Despite earlier reports that Audi was dropping plans for a high-performance TT-RS, we now have news that the company is developing two new performance versions of the recently released coupe. The new models will be labelled the TT-S and TT-RS and are scheduled for delivery in 2007 and 2008 respectively. The lower priced S will feature a revised version of the turbo 2.0L found in the current S3 hatch and should produce around 300hp.

However, the more exciting RS version will be equipped with a tuned version of the 2.5L five cylinder engine that’s found in the US delivered Volkswagen Jetta sedan. This engine shares some of its design with the potent 5.2-liter V10 from the Audi S8 and will develop an estimated 365hp. Both cars will utilize either a conventional six-speed or S-Tronic dual-clutch transmission driving all four wheels.

Look towards next month’s Los Angeles Motor Show to catch the world debut of the TT convertible, which will start sales in the US in March next year. Further, there are reports of a new TDi version in the works as well.

[Source: Edmunds Inside Line]