Porsche will build its fourth model line in the eastern German city of Leipzig, now the site for final assembly of its Cayenne offroader, Reuters reported, citing the Berliner Zeitung.

"Leipzig has by far the best chances when the fourth model line comes," the newspaper reportedly quoted a company source in Stuttgart as saying.

While the fourth model line is key to Porsche's growth strategy, the model is not expected to go on sale until 2009, Reuters noted, adding that a company spokesman declined to confirm the report.

"There will be a statement this summer, and everything else is just pure speculation," he told Reuters, adding that summer meant probably in July or August.

Leipzig is also home to a new BMW factory.