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.

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