Thought Mercedes-Benz had filled every conceivable niche? Well, according to a fresh report out of Italy, the German company is working on a new model range set to wear the CLE badge.

A new report from autoblog.it claims the Daimler-backed company is planning to introduce a CLE four-door model by 2023, featuring a swoopy sedan shape inspired by the CLA and CLS (and positioned between the two).

The publication claims the newcomer will slot in between the C-Class and E-Class in terms of overall size, measuring around 4 850 mm long and riding on a rear-wheel-drive (with the option of all-wheel drive) platform.

Interestingly, autoblog.it says the CLE will furthermore be offered in wagon form, as well as in coupé and cabriolet guise. The report suggests the CLE versions of the latter two body styles will ultimately replace the C-Class coupé and cabriolet as well as these versions of the E-Class.

According to the publication, the new CLE range will debut an updated version of the Stuttgart-based firm’s 2,0-litre, four-cylinder turbodiesel engine, complete with mild-hybrid technology.