The new car is 14 cm longer than the outgoing 206, giving more interior space, particularly in the back, gets a whole new lineup of engines, including a turbo-charged unit it's developing in conjunction with BMW to power the next generation MINI.
Full details are expected later today but you can expect the range to start with a 56 kW 1.4-litre petrol unit, to be followed later by a 67 kW 16-valve version.
Initially the most powerful 1.6-litre petrol unit will produce 82 kW, but the turbo motor is expected to become the prime mover for a new GTI.
There's also a 1.4-litre turbo-diesel producing 52 kW as well as a 67 kW diesel, with more powerful versions expected later.
Although the 207 will be launched at the Geneva Motor Show in March, it is expected the 206 will continue in production in entry-level format after that.
The Peugeot 207 in five-door guise