Toyota and BMW are collaborating to develop two sports cars.

One will be a replacement for Toyota's Supra, the other a new BMW Z4.

The four wheel drive hybrid vehicles will feature almost the same technology - BMW petrol engine and electric motors but will be different sizes.

Of the Supra's replacement, Kart Schlicht, Toyota Europe's product planning head, said: "The intention with the new car is for it to sit above the GT86. It doesn't replace that model; the GT86 goes on with its own mission."

The new model will cost more than GBP22,495 (US$33,617), which is the price of the current GT86 in the UK, Cars.aol.co.uk reported.

The companies are considering making the new models in Europe or the US.

BMW supplies Toyota Europe with some of the diesel engines used in the Verso, Auris and Avensis.