It's been previously reported that Audi had canned the R4, a smaller sibling to the R8, due to Porsche's fears of jeopardizing Boxster sales. Even Michael Dick, Audi's member of the board of management for technical development, confirmed that there will be no baby R4 or a V12 TDI version of the R8.
Nonetheless, AutoExpress is reporting today that Porsche and Audi have worked out their differences and the mid-engine R4 is a go and will be built on a new platform, sitting above the Audi TT. Power will come from a range of TFSI engines with the entry level most likely being a 2.0L turbo. The new 335-hp 2.5 5-cylinder lined up for the TTRS will be available for the R4 as well. Rumor has it that it may even get a high-performance V6 diesel and petrol.
The Audi R4 will also get quattro four-wheel drive with torque split 40:60 in favor of rear wheels. AutoExpress is also reporting that the next-generation Porsche Boxster will use the same platform as the R4 but will go with the firm's traditional rear-wheel-drive set-up. It will also continue using flat-sixes.
Photo Rendering: 2011 Audi R4: