BMW is considering unleashing a 350bhp M version of its lower-medium 1 series.
Kay Segler, boss of BMW's M division, has reportedly been discussing the possibility of making a performance-geared version of the coupe.
Company sources confirmed that discussions had been taking place, but said there were no definite plans to bring the car to market just yet.
The M1 would be based around the 1 series tii concept that BMW revealed in late 2007 at the Tokyo motor show. The concept was based on a 1 series coupe and featured weight reducing technology such as carbon fibre panelling, elements that would also make it to an M series car.
Engine details never emerged for the concept, but it is rumoured that a production version could feature a turbocharged 3.0-litre.
BMW is debating what to call the M 1 series, with the names M1 and M2 both being considered. It is also discussing whether the car would harm M3 sales.
The 1 series is due to be replaced in 2011, and the company source indicated that any performance version would not arrive until after this date.