Expected to be unveiled at the Frankfurt motor show in September, the 1.0-litre version was first mooted when the second-generation i20 was unveiled at the 2013 Paris motor show.
At last year's Paris motor show, Hyundai unveiled two new downsized, turbocharged petrol engines - a 1.0-litre and 1.4-litre. The three-cyclinder 1.0-litre unit has a capacity of 998cc and is based on the Korean firm's existing Kappa MPI engine. The engine features direct injection and a small, single-scroll turbocharger and can be tuned to produce up to 118bhp and 127lb ft.
By comparison, Hyundai's existing 1.0-litre engine, which is available in the smaller i10, produces 65bhp. The smallest-capacity engine in the current i20 line-up is a 74bhp 1.2-litre petrol.
The i20 is currently Hyundai's second best-selling model in the UK, and introducing a frugal new petrol option with more power would help to further broaden its appeal. As well as slotting into the hatchback, it's likely that the new 1.0-litre engine will also find its way into the i20 Coupé, which went on sale in the UK this March.