Porsche is planning to introduce a diesel-powered vehicle to its line-up in 2009.
According to reports Porsche is keen to give its Cayenne SUV some diesel grunt.
The German sports car maker will source the diesel technology from VW, in which Porsche has a 31% stake.
Porsche executives have had reservations about diesel engines in the past.
Last year the carmaker's CEO Wendelin Wiedeking told Automotive News Europe that because of the additional costs and relatively low sales volume of Porsche cars, he didn?t think such a move would make sense.
Now insiders say that Porsche is changing its tune due to tougher emissions legislations in Europe.
Furthermore it seems likely that Porsche will also launch a hybrid version of its upcoming four-door Panamera coupe.