The head of the BMW M division has confirmed his department is considering developing standalone M-badged models, likely to take the fight to Mercedes-AMG.

Speaking to motoring.com.au, BMW M boss Markus Flasch said the new models could “potentially” be developed from the ground up, rather than being based on existing mainstream variants (like the M3 is based on the 3 Series).

“We are investigating M variants that may also be standalone, that don’t have a predecessor,” Flasch told the Australian publication.

He confirmed the Munich-based firm's high-performance division had narrowed down the segment it was investigating, but added “we can’t talk about it” before revealing “more than one” concepts were being studied.

Flasch went on to say he “would love to” create a hypercar but explained "we are part of a big company and we only do things that make sense economically and are relevant for the brand”.

“So far, M is the strongest high-performance brand and we did not need a hypercar. So from a brand perspective it is not needed, M is strong as it is.

“Economically, hypercar projects are always difficult and so the prerequisites to turn such a project into reality are obviously very difficult, but I would not rule it out,” he said.

Flasch said the final product would have to “fit our character; a combination of precision, agility and luxury".

“And we are not copying; we are doing it our own way,” he said, perhaps in reference to Mercedes-AMG’s standalone GT range.