The new model will be produced at a new plant set up by Fuji Heavy Industries, which owns the Subaru brand.

While the collaboration strengthens ties between Toyota and Subaru, each company plans to market and badge the car separately.

Toyota will also boost its stake in FHI from 8.7 per cent to 16.5 per cent, paying $311m (£157m) for the increased holding.

FHI plans to use this payment to develop the new plant where the model will be made.

Under the terms of the partnership, Toyota has agreed to supply FHI with the body of the sports car and FHI will contribute the technology.

Starting in 2009, FHI will also receive access to mini vehicles from Toyota's affiliate Daihatsu.