Peugeot's RC Z coupe is happening. Definitely. Ever since it unveiled the 308-based concept last year, Peugeot has been dropping strong hints that it would actually build the thing. Hints along the lines of 'yes, we're definitely going to build it'.

And today, those hints have become, erm, not-hints, as Peugeot has announced that the RC Z will be on sale within two years.

A two-door Audi TT rival based on the 308's underpinnings but with a whole load more curviness, the RC Z will effectively fill the role of 308 GTi: Peugeot chiefs told us last week that there are no plans to build a 308 GTi hatch.

Although Peugeot hasn't released any RC Z specs yet, it says 'the specification of the production model will be based on the key features of the production car', so expect a tuned-up version of the 1.6-litre turbo engine out the 308 GT (and the Mini Cooper S) putting out around 220bhp. That should be good for a 0-60 time of around seven seconds and a top speed of 150mph.

Peugeot describes the RC Z's styling as 'highly original' and, if it ends up looking anything like the concept - which we expect it will - we can't argue with that. There's a touch of Karmann Ghia about the back end, we reckon, and for novelty value alone we hope that the buttock-inspired roof makes it to production.

We'll see the production RC Z at next year's Frankfurt Motor Show before it goes on sale in early 2010.