Volkswagen is planning to make a sub-5000 euro (£4270) Skoda variant of its Up! city car, according to reports from Germany.
The reports claim Skoda’s version of the VW Up! will be called the Joyster and would follow soon after the 2010 launch of the Up!.
Seat has also been linked to selling an Up! variant to replace its Arosa city car, although both Seat and Skoda have previously expressed concerns that the cost of the Up!’s components would price both firms out of being able to sell the car.
When contacted by Autocar, a Skoda source said no details to do with Skoda's Up! variant had been decided as yet.
"Nothing has been confirmed yet except from that it will exist," said the source.
"The Joyster name has come from a concept car we showed a few years ago but that doesn't mean Skoda's Up! will be called the Joyster."
Audi has previously confirmed that it will launch an all-electric car which is likely to based on the Up! in 2014.