Two-time World Rally champion team M-Sport is believed to be working on a Ford Fiesta rallycross car that will be available for the European and Global Rallycross series next season.
There has been no official comment from the Cumbrian firm, but sources close to M-Sport have confirmed the car is expected to be up and running early in 2013 and ready in time for the start of the ERC and GRC seasons.
"There's so much expertise in building rally - or rallycross - Fiestas at M-Sport, this kind of thing makes a lot of sense," said the source.
M-Sport has had a technical involvement with GRC teams in the past, but this would be the first time the British company had built its own machine.
"Plans for the car are underway," continued the source. "We understand the transmission will come from Sadev, with the engine and all the other work done in-house on the car.
"Since Ford's decision to withdraw its funding from the WRC programme for next year, it seems there a lot of interest in guiding M-Sport's technical and engineering ability into other programmes. And, beyond that, there's always an appetite for working on a competition car which is going to have upwards of 600bhp."
A spokesman from M-Sport said: "We are currently evaluating all motorsport activities, but we haven't made any decisions about 2013 yet."
International rallycross is one of motorsport's biggest growth areas, with both the ERC and GRC receiving considerable investment recently.
The championships are also being watched by European-based manufacturers, with Ford's Gerard Quinn talking about the potential for a future Blue Oval effort in the Global Rallycross, while Volkswagen is also considering a GRC entry.