A fresh report out of Japan claims Subaru is working on a B-segment hot hatch set to take on the likes of the Ford Fiesta ST and Volkswagen Polo GTI.

According to Japanese publication Response, the Shibuya-based automaker is already hard at work developing a new performance hatchback, with an eye to eventually using it as a base to re-enter the World Rally Championship.

The report claimed Subaru was keen to follow Toyota back into WRC. Toyota, of course, returned to the sport in the 2017 season with its Yaris WRC.

The publication furthermore suggested the rumoured Subaru hot hatch would employ a “highly tuned” horizontally opposed, four-cylinder petrol engine. We’d add that if the model were to actually see the light of day, we’d expect it to also offer the brand's trademark symmetrical all-wheel drive and a suitably aggressive body kit.

It’s not yet clear what sort of platform would underpin this proposed model (considering Subaru doesn't currently offer anything this size), which Response claims could be revealed as early as 2019.

Whether the report turns out to be accurate, though, is another story altogether, seeing that no prototypes have yet been spotted testing…