According to sources that have spoken to Automotive News, the new 2.0-litre turbocharged four-cylinder engine will feature direct injection, variable valve timing, an aluminium block and a twin-scroll turbo.
Codenamed 'Hurricane', the engine is said to develop around 300hp (224kW), at least in top-spec form. The trade publication believes that the new engine will make its debut in the next-generation Jeep Wrangler, which is due in 2017.
Above: The current-generation Jeep Wrangler.
In the new Wrangler, the four-cylinder engine will be sold as a more fuel-efficient alternative to the standard V6 engine.
Along with an eight-speed automatic transmission and the use of light weight materials - such as aluminium - throughout the body, the four-pot is expected to be significantly more fuel-efficient than today's Wrangler.
Equipped with a 209kW/347Nm 3.6-litre V6 and a five-speed auto, the current-generation two-door Wrangler has a fuel economy rating of 11.3L/100km on the combined city and highway cycle.
It's expected that the 2.0-litre turbo engine will go into production alongside FCA's existing 3.6-litre Pentastar V6 at its factory in Trenton, south of Detroit, which is in line to receive a US$75 million ($98 million) upgrade.