New sedan will slot below the Panamera (pictured here).

Porsche looks likely to continue its expansion into lower price brackets with a smaller sedan that slots beneath the company's first and only sedan to date, the Panamera.

German magazine Autobild reports that the sedan is codenamed Pajun and will compete head-on with the Mercedes-Benz E-Class and CLS. It's also speculated that it will cost between 65 000 and 100 000 euros (R674 000 and R1 037 000) in Europe - the current Panamera sells for between 77 446 and 168 987 euro.

However, when Reuters followed the story up with Porsche spokesman Hans-Gerd Bode, he told them that there were many ideas for a sixth Porsche model but that no decisions had been taken yet.

Auto Bild also reports that the Pajun would be launched by 2017, and that there will be a choice of four six-cylinder engines comprising three petrols with respective outputs of 236kW, 309kW and 383kW and a 230kW diesel.