The British motoring icon is tipped to revive the true two-seater sports car to take on the Italian and German sports cars.
The most loved of the Jag family was built in the Swinging England period of 1961 to 1974.
With its performance, handling and modern looks it was a huge sales success and is still a highly sought collector's car.
Even Enzo Ferrari said it was the most beautiful car ever made.
It's a huge legend to live up to for the Coventry manufacturer, which is about to be bought by Indian car manufacturer Tata.
Jaguar chairman and former Ford Australia boss Geoff Polites confirmed they were investigating future model options, including the two-seater sports car.
Jaguar Australia marketing communications manager Tim Krieger would not comment.
“I'm not in a position to comment on speculation about any future product ,so nothing to add at this point,” he said.
While the new E-Type would get a modern makeover, its legendary elongated nose would be bound to be retained. Possibly a stretched version of the XK, but with a smaller cockpit than the XK's 2+2 cabin.
Jaguar almost revived the E-Type in 2000 with a model based on the F-Type concept unveiled to rave reviews at the Detroit Motor Show.
It would be expected that the production model will feature a Jaguar V8 engine.
Jaguar could pick from the 3.5-litre 190kW V8 or, more likely, the XK's 4.2-litre unit with 224kW, 298kW or the XKR's 306kW engine.
The transmission would likely be the six-speed automatic with steering wheel-mounted paddleshifters.
While Jaguar has yet to name the car, it would be a smart move to rekindle the legendary E-Type badge.
Jaguar is also working on the new XJ saloon which is expected to continue chief designer Ian McCallum's XF style.
The XF will be released in June, starting at $105,000 with V6 and V8 petrol engines and a diesel V6.