Toyota Australia, which has just launched the locally built, seventh generation Camry, would like to offer it with BMW diesel engines, according to a local report.

According to caradvice.com.au, the only diesel Toyotas sold in Australia are the Prado (Colorado) and Land Cruiser SUVs.

Under a new collaboration agreement between Toyota and BMW, the Japanese automaker will be supplied with diesel engines for European models while the German automaker gains help developing li-ion batteries.

Any BMW diesel engine fitted to the Australian-made Camry would probably be a two-litre from the 1-series, the report suggested.

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