The A-Class Sedan will allegedly slot between the stylish CLA and the C-Class.

Mercedes-Benz is moving forward with the development of a brand-new compact sedan, according to a recent report coming out of England.

The model will be a variant of the A-Class, which is currently only offered as a four-door hatchback (pictured) and not sold on our shores. The sedan will be positioned between the stylish CLA and the C-Class, and it will ride on the second generation of Mercedes' modular MFA platform.

That means front-wheel drive will come standard, though 4Matic all-wheel drive will be offered at an extra cost. Purists will likely scoff at the idea of a shrunken C-Class with front-wheel drive, but the configuration is par for the course in the segment. The A-Class Sedan's main rivals will be the BMW 1 Series Sedan built and sold only in China and the Audi A3 Sedan, two models underpinned by front-wheel drive platforms.

In Europe, the A-Class Sedan's base engine will be a turbocharged four-cylinder borrowed from industrial partner Renault and modified by Mercedes. Upmarket variants will receive a Mercedes-sourced turbocharged 2.0-liter four-cylinder engine.

A plug-in hybrid model powered by the aforementioned turbo four and a compact electric motor will join the lineup shortly after the standard model is introduced. It will be capable of driving on electricity alone for short distances. An AMG-tuned model with at least 400 horsepower under the hood will round out the lineup.

The Mercedes-Benz A-Class Sedan will arrive in 2018, according to British magazine Autocar. Its main markets will be the United States and China.