Sports Cars Pictures

Exciting news for Jaguar fans this week, as Britain's Auto Express magazine revealed that the company is planning to reinvent the legendary XJ220. The magazine, well-regarded for its new car scoops, claims a dramatic new mid-engined sports car is being developed by Jaguar as a rival to the Audi R8.

While the concept is denied by Jaguar, the magazine claims that the car will make its debut at a major international motor show within the next 18 months - indicating that plans must already be well advanced. In a nod to the marque's iconic E-Type, the two-seater is tipped to be badged the XE, heralding a return to a more raw, sporting side of Jaguar's heritage.

However this isn't the first Jaguar concept thought to be set for the badge. Last year it was speculated that it would adorn a Porsche Boxster-rivalling baby coupe-convertible that would sit below the XK in the range.

Plans for an R8 rival would mark another big step in the company's revival of its dated model range.

The revelation comes as the sports version of Jaguar's new XF model has smashed the company's speed record.

In a graphic demonstration of the progress made in car design and engineering since the 1990s, an uprated four-door XFR saloon hit a top speed of 225.675 mph at the Bonneville Salt Flats, going even faster than the 217.1mph record set by the XJ220.

Rumours are that the minor developments to the showroom XFR that boosted the car to the record will debut on the road as a hotter XFR S model.

With a price that will undercut significantly the BMW M5, the flagship XFR is set to be a tough package to beat at the top of the executive saloon sector.

Jaguar had a mixed year in 2008, launching the widely-praised new XF model and seeing UK sales rise by nine percent while many other luxury car brands faced a sales slump.

But this success was overshadowed by news towards the end of the year of extended shut downs at the company's Castle Bromwich plant and job losses. With the company's current focus on developing its new XK and XF models, as well as launching an all-new luxury XJ saloon due in 2010, the XE is not likely to be seen in the showrooms before 2012.