Rolls- Royce yesterday played down a seemingly authoritative report that it was planning a "mini" version of its world famous super-luxury car.

Burkhard Goeschel, a director of parent company BMW, was quoted by a German newspaper on Sunday as confirming that a smaller Rolls-Royce was on the stocks.

According to Welt am Sonntag, the new car would cost in the region of £170,000 and be in the showrooms in 2010.

The report went on to say, however, that plans were not very advanced.

A spokesman at Rolls-Royce's headquarters at Chichester in Sussex said the report was " not entirely accurate".

The firm, which was acquired by BMW in 2000 for £40 million, currently makes the Phantom ( below) which retails at £216,950.

It is currently concentrating on the new long wheelbase and convertible variants of the existing car, the spokesman went on to say.