AUDI'S latest compact rocket the S3 - performance flagship of the A3 range - is about to burst from the starting blocks.

Dealers are expected soon to begin taking orders for first UK customer deliveries scheduled for January 2007.

The Audi A3, noted for its dynamism, sportiness and sophistication, already holds an outstanding position in the premium compact class.

The new Audi S3 shares those characteristics, but also boasts 265PS and quattro permanent four-wheel drive, to blend sparkling performance and driving pleasure with everyday practicality.

Audi claim the S3 redefines the standards of its class - at the level of a sports car. The sprint to 62mph is accomplished in 5.7 seconds, and top speed is limited at 155mph.

Free-revving and with a sonorous acoustic profile, the powerful two-litre, turbocharged four-cylinder unit with FSI petrol direct injection proves to be a smooth, high-performance engine.

This power is transmitted by the six-speed gearbox and quattro permanent four-wheel drive to 18-inch alloy wheels.

The new S sports suspension system and precise steering on the S3 enables a sporty driving style combined with comfort, and quattro technology ensures the best adhesion and maximum acceleration out of bends.

The three-door sports carries Audi's current trademark, the single-frame grille sports chrome trim. The front skirt has a spoiler with large air-intakes and the side sills have been restyled. There is a contrasting platinum grey diffuser built into the rear skirt, along with two S-style oval chrome tailpipes. Aluminium-look door mirrors and a body-colour roof spoiler give added visual impact.

The two-litre engine combines direct injection and turbocharger technology to deliver 265PS at 6,000 rpm. And at just 2,500 rpm it already musters up an impressive 350 Nm of torque - this pulling power remains constant up to 5,000 rpm. In the combined driving cycle the 2.0 TFSI displays another welcome character trait, its FSI direct petrol injection technology contributing to a combined economy figure of 25.7mpg.

Compared with the A3, the engine is an advanced version which has undergone fundamental changes. The new turbocharger with its enlarged turbine and compressor rotor generates 1.2 bar of boost pressure - an unusually high figure. A modified intercooler significantly lowers the temperature of the compressed air, thus increasing the air mass necessary for combustion.

Pistons with stronger pins and strengthened connecting rods with new bearings transmit the powerful forces to the crankshaft. The cylinder block has been stiffened up and the head is made of a new, highly heat-resistant alloy.

The exhaust camshaft timing has been adjusted to accommodate the increased power output. High-pressure injectors with an enlarged cross-section squirt the fuel straight into the combustion chamber. Despite all this progressive engineering, the high-performance turbo weighs in at just 152 kilos, which is less than comparable power plants from direct competitors, and this has a positive effect on the axle load distribution.

The transverse engine layout brings benefits for interior space and luggage capacity.

The new Audi S3 has a six-speed, close-ratio manual gearbox. Gearshift travel has been reduced for the S3, enabling even sportier and more precise gear changes.

As is the case for all Audi S models, the new S3 drives all four wheels through quattro permanent four-wheel drive. An electronically controlled multi-plate clutch, positioned at the rear for the benefit of weight balance, distributes the torque as needed - delivering plenty of grip. All the components in the drive train have been strengthened to cope with the high level of engine torque Audio say the S3 exhibits all the qualities of a high-performance sports car; responding immediately to steering movements and achieving high cornering speeds.

The suspension of the A3 - with subframes front and rear, triangulated lower wishbones at the front and four-link suspension at the rear - has been further refined.

Springs and shock absorbers are stiffer, and the body sits 25 mm lower than an A3 with standard suspension. Aluminium pivot bearings and wishbones reduce the weight of the front suspension, and the electro-mechanical steering has a sportier feel than the standard A3.

Braking is through a high performance system with sports brake pads.

Front fog lights and xenon plus headlights with daytime running lights underline the impressive performance.

Inside the cabin, the style is sporty with sports seats with prominent side sections, black headlining also available in silver, and the instrument cluster with its special dials and needles.

The pedals, gear knob and air vents are in aluminium look, the inlays are in Piano finish black, or alternatively Aluminium or Fine grain birch wood grey.

The seats are upholstered in a combination of cloth and leather or, as an option, in Alcantara/leather or completely in leather. The two-tone leather seats are decorated with stitching in the same colour as their centre section. The red and silver S3 emblem abounds throughout the interior.

The extras also include a leather steering wheel with flat-bottomed rim and - in the quattro GmbH range - folding bucket seats.

The car's infotainment package has universal interfaces for mobile phone and iPod, plus a sound system from Bose. Standard equipment includes deluxe automatic air conditioning, a driver information system with a new lap-timer function, and an anti-theft alarm.

The basic price of the S3 in the UK is around £27,000.