The latest news is that the Subaru will be around 50hp (37kW) more powerful than the FT-86, which could see the naturally-aspirated 2.0-litre four-cylinder producing close to 250hp (186kW).
It is believed Subaru will make an all-wheel drive version which is expected to be released in 2011, probably after the Toyota, greatly increasing its chances of coming down under.
The cars will share a six-speed manual gearbox but the Subaru is set to be slightly larger and more expensive in a deliberate ploy to keep the cars from competing directly against each other.
Both Toyota and Subaru are yet to commit to bringing their vehicles to Australia when production starts in late 2011.
by Tim Beissmann