Fiat only took the wraps off its new 500 city car a few months ago, and now our spies have shot this hot Abarth version undergoing development work.

Caught at the Nürburgring, the 500 Abarth is due to be revealed in its production form later this year and will go on sale in the UK in 2008.

Power comes from the 1.4-litre, 150bhp turbocharged engine from the Grande Punto Abarth. The 500 Abarth will feature larger wheels and a more aggressive look.

Fiat is rumoured to be offering myriad personalisation options with the 500 to match the MINI – its chief sales rival.