According to Autocar, the new Volkswagen Golf GTI will be powered by a tweaked version of the current 2.0-litre turbocharged engine. A new valve lift system developed by Audi will be among the changes that help increase power approximately 10kW to 165kW.
The Mk7 GTI and Golf R models are also expected to benefit from a new electronic mechanically locking differential for improved road holding and handling.
Previous spy shots have shown the sports models (and potentially the rest of the range) will get a wider rear track.
The 1.4-litre twincharger (turbocharged and supercharged) engine found in the current Golf 118TSI will drop the supercharger to become a turbo-only unit. Power will reportedly fall slightly to around 112kW, although at the benefit of reduced production costs and complexity.
Earlier this week, we reported the next-generation Golf would feature a sleeker exterior design and an all-new dashboard and instrument cluster, with the centre console oriented towards the driver.
The Volkswagen Golf Mk7 will be revealed in 2012, with reports suggesting it will go on sale either later next year or early in 2013.