The new concept, which was teased last week, is based on the Nissan March (Micra) and is a crossover between a SUV and a small sports car, Nissan design chief Shiro Nakamura told Autocar.
Nakamura said that Nissan's Brazilian operation has led development of the concept, and the build of it took place there. The design work was undertaken by Nissan's Design Studio in San Diego.
The Extrem is smaller than a Juke, and is billed by Nakamura strictly as a concept in its current guise.
He also distanced the concept from reports claiming it was intended to preview a modern day successor to the Nissan 240Z sports car.
Autocar understands the concept previews Nissan's intentions to launch a small three-door crossover for markets including Brazil. Indeed, one source said the firm "never did show cars that are flights of fancy".
As well as using March mechanicals, the concept also features front-end styling inspired by the model, a move which is intended to link the March, which was recently introduced into the Brazilian market, to the concept.
Initially, certain design flourishes from the Extrem are expected to carryover into future production models, such as the headlight design.
But further off, should the concept be well received by the Brazilian show public, then Nissan is poised to launch a small three-door crossover for the market that's smaller than the Juke but inspired by the Extrem.