It will arrive shortly after the launch of its new Toyota Yaris WRC car. The motorsport-spec Yaris packs a 375bhp punch, with 314lb ft of torque, from its turbocharged 1.6-litre petrol engine, although the road-going car is more likely to have a Ford Fiesta ST-rivalling output of around 200bhp and more than 200lb ft of torque.
It's likely to be powered by a 1.6-litre turbocharged engine, which would tie the model in with its World Rally Championship counterpart, as Toyota recently announced revisions to its engine line-up to make it more powerful with a greater focus on driver enjoyment. It's too early for official performance figures but the class average for the 0-62mph dash is between 6.5sec and 7.0sec.
Toyota has not revealed any details about the upcoming Yaris hot hatch, aside from the car's inspiration from the WRC car (pictured). The Gazoo performance moniker is expected to grow from the Yaris, though, to become the in-house performance sub-brand at Toyota, akin to BMW's M division and Mercedes' AMG.
A single image of the car - in design sketch form - reveals all the hallmarks of the segment, with larger alloy wheels, a low ride height, low-profile tyres and bodywork upgrades that include a rear spoiler, as well as a three-door bodystyle.
The supermini and city car segments continue to abandon three-car bodystyles as buyers move to the more practical five-door layout, but it seems that Toyota will continue to buck this trend by offering the Yaris Gazoo as a three-door.
Toyota remains tight-lipped about any details surrounding the Yaris Gazoo but more information is expected to emerge in the opening months of the new year.
The news comes as Toyota's forthcoming Supra reaches an advanced stage of development and a more dynamic Toyota range becomes a priority for the company.