The new Lexus model will be named the ‘BX’, the report by AutoHome claims, and it is expected in showrooms in 2023.
The Lexus BX is expected to adopt the same 1.5-litre three-cylinder engine as the Yaris Cross, however will only be offered as a hybrid.
The Lexus BX would be the company's smallest SUV to date, slotting beneath the Lexus UX.
The Lexus BX models is expected to have a unique exterior and interior design, so customers will likely be unaware of the origins of the vehicle.
There is a possibility the Lexus BX could be available in F Sport trim with a four-wheel drive system, according to the report.
While Lexus has not confirmed the BX, the Toyota Yaris Cross on which it is said to be based is expected to launch in Australia later this year.