The baby SUV concept, a potential rival for the likes of the Nissan Juke, was revealed previously at the Beijing motor show in 2012.
At the time it was said to be a design study to judge reaction to its retro themes, as opposed to a potential production car. MG now says the reaction was so strong that it could be made.
"There is clearly room for such a car in the market, with small SUV sales expected to grow rapidly," said MG UK sales and marketing boss Guy Jones. "The question at the moment is whether we build a style led but less practical version, or a less stylised but more spacious model."
Insiders say the more sporty version of the Icon is favoured internally, as it could be used to build recognition of the MG brand as it pushes sales in to Europe. However, Jones insisted no decision had been taken yet.
"If we build a production version of the Icon it will follow behind the larger SUV hinted at by the CS concept here in Shanghai," he said. "But whatever we do will be led by the global requirements - any production car we build needs to sell in every region, not just Europe."