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  The proposed BMW could use the Mini Countryman (pictured) platform that, in one form, is all-wheel drive. Unlike other Mini models, the Countryman is made in Austria, close to BMW's Bavarian base.

The first front-wheel drive BMW is coming.

After a lifetime of sporty rear-drive motoring, the German brand is about to tap its front-wheel drive experience with Mini to create a new baby car to compete with the Audi A1 and new-generation A-Class from Mercedes-Benz.  It could be hard to find a name, as BMW is already right at the bottom with its 1-Series, but the move is definitely happening.

"It's definitely something we are looking at – but there's no timing on this," says a BMW insider.  The Mini is made as a front-wheel drive or all-wheel drive - the latter perfectly suiting BMW's reputation as a builder of sports-oriented vehicles.

It also eases BMW from its strait jacket policy as a manufacturer only of rear-drive - and in some cases all-wheel drive - cars.  While Mini spokesman Cypselus von Frankenberg won't discuss the rumour, BMW was less guarded.

A spokesman - who declined to be named - admitted the company is seriously considering a model smaller than the current 1-Series.  The proposed BMW could use the Mini Countryman platform that, in one form, is all-wheel drive. Unlike other Mini models, the Countryman is made in Austria, close to BMW's Bavarian base.

Mini and BMW have, until now, not shared components. But the rumour of the compact BMW with Mini underpinnings coincides with the next Mini diesel that has a BMW turbo-diesel powerplant.  The 1.6-litre turbo-diesel, which arrives in the Mini later this year and replaces the current diesel, is a 2-litre BMW engine that has been reduced in capacity.

Mini has confirmed it will move into motorsport using the all-wheel drive platform of the Countryman.  Initially it was hinted that a short wheelbase version could be made with all-wheel drive and that this could form the platform for a 1.6-litre world rally championship series.

Mini, however, has denied it will make a short version of the Countryman and points instead to the forthcoming front-drive Mini Coupe as the source of the rumour.  Spy shots have been shown earlier this year of a high ground clearance three-door Mini concept called Canyon.

But Mini has categorically denies it will make a short wheelbase all-wheel drive car, saying it is already heavily involved in pre-production of the new Coupe and Roadster variants.