Volkswagen Australia will decide by the end of April whether to reintroduce its Skoda brand Down Under, according to a report in The Age newspaper.

The Age says Skoda wants to sell at least 3000 cars a year, in a market its export manager describes as "difficult", but sees potential for as many as 5000.

A decision is likely within months, allowing cars to be on sale as early as next year, the newspaper said.

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Skodas would this time be imported using the VW Australia infrastructure but the brand would be sold from purpose-built showrooms.

The brand has been sold previously in Australia but through independent importers.

If the go-ahead is given, The Age added, Skoda would sell a full range from the Fabia compact hatchback to the Superb luxury saloon.