The new coupe will be badged as the A5 and will share its underpinnings with the third generation A4 and VW's upcoming coupe.
However, the A5 will take a more upmarket stance than its VW sibling and will rival the Mercedes CLK and next BMW 3 Series coupe.
The A5's styling will be influenced by that of the Nuvolari and new Shooting Brake concept cars.
A soft-top cabriolet version with a canvas roof will replace the current A4 cabrio in 2008. The new A4 range will also be unveiled late in 2008.