According to the firm the new power plant will be a more powerful version of the 150bhp unit currently available in the cheap new Laguna. The new 2.0-litre engine will deliver 175bhp compared to the 150bhp, available at the moment. Melded to a six speed manual gearbox the 2.0-litre dCi Laguna currently returns 48.7 mile to the gallon and is able to reach 60mph in 8.9 seconds.

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It is expected that the replacement engine will improve on all of these figures while also offering a quieter and more refined drive.

The new Laguna announcement comes at a busy time for the French manufacturer, who is currently in the midst of the cheap new Renault Clio III launch.

Renault is hoping that the improved handling and better use of interior space in the new Clio will win sales from its growing band of rivals.

For the sporty hot hatch market Renault is offering a six-speed gearbox and, for the first time, a "quick shift" system.

The "quick shift" gearbox is controlled by Formula 1 style paddles located behind the steering wheel, allowing the driver quick gear changes without having to let go of the wheel.

Like the new Laguna the Clio III will also offer a diesel option, available at up to 106bhp.