According to Autocar, the S1 is set get an uprated version of the VW Group's 2.0-litre turbocharged unit. It aims to become the most powerful hot hatch among its competitors, pushing around 250bhp from its TFSI four-cylinder engine.
It will have all-wheel drive which in turn will give the S1 a much improved century sprint timing. The outgoing S1 did the sprint in 5.9 seconds.
Combined with the latest MQB A0 platform, the car should also offer a better driving experience.
It remains unclear whether the upcoming Audi S1 will get a manual transmission but judging from the 197bhp 2.0-litre A1 40 TFSI that is only available with a dual-clutch gearbox, chances are slim.