MERCEDES-BENZ has lifted the wraps on a compact supercar in the shape of its new A 45 AMG model, which hits the streets in July.

It features the most potent series production four-cylinder engine in the world, boasting a power density of 181bhp - and that outstrips even the most powerful sports cars.

Unlike other models from the AMG stable which use either V8 or V12 engines, the new A 45 has a 2.0-litre four-cylinder turbocharged unit.

And in dubbing it ‘driving performance for the new generation' the boys at Benz say the newcomer is part of its AMG Performance 50 strategy, which runs up to the 50th birthday of Mercedes-AMG GmbH in 2017.

Mercedes says the A 45 AMG also leads its area of the market in terms of fuel consumption, returning 40.9mpg combined.

It comes with a 4Matic four-wheel drive set-up, seven speed automatic transmission and can hit 62mph in a fleeting 4.6 seconds - and that's quicker than a Porsche 911.

There's also a new sports suspension, speed sensitive AMG steering and a sports exhaust to help drivers really feel the noise.

The car will make its public debut at next month's Geneva Motor Show.