The latest news on the upcoming, seventh-generation Volkswagen Golf GTI, is that the hot hatch could get a more powerful engine than what we originally thought.

Up until it now, it was believed that the next GTI’s 2.0-litre turbocharged four-banger would get a 10 to 15 percent boost from 207hp (210PS) to around 220hp-230hp, but Autocar magazine reported today that the hot hatch may make as much as 260-horsepower.

If true, this would mean that the Golf R’s replacement, which in its current form has a 266hp (270PS) 2.0-liter turbo, would get well over 300-horsepower.

The same report claims Volkswagen has developed a new front differential for the next GTI, which uses an electronically controlled Haldex clutch for “more agile steering behavior”.

Wolfsburg insiders added that even without the significant power boost, the next GTI with the new limited slip differential would be faster on the ‘Ring than today’s model.

While the Golf Mk7 is due to be revealed at the 2012 Paris Motor Show this September, the GTI model will likely be introduced next year.

If you scroll down, you’ll find a new video scoop of a 2013/2014MY Golf GTI prototype caught testing around the Nürburgring.

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