According to a recent report, Audi is developing an all-new model to battle the BMW 1-Series GT.

According to a recent report, Audi is developing an all-new model to battle the BMW 1-Series GT.

Set to be launched in 2016 or 2017, the car will be an "elevated space vehicle" that blurs the lines between a hatchback and crossover. It is expected to be based on the A3 and offer seating for five or seven people.

Little else is known about the model but is expected to ride on the MQB platform and measure approximately 177 inches (4496mm) long.

A concept has already been built but Automotive News says Audi hasn't decided on whether or not to introduce the vehicle at the Frankfurt Motor Show.

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Audi working on a BMW 1-Series GT competitor - report