Renault has put the 2.0-litre 138bhp engine with new six-speed gearbox in the New Clio.

Available exclusively in the three-door Dynamique S trim at launch, this engine will also be available in five door and automatic versions in 2007.

The new Clio Dynamique S 138 is priced at £12,810, has a top speed of 127 mph, a maximum torque of 194 Nm at 3,750 and a 0-62mph of just 8.5 seconds.

Standard equipment for the two-litre 138 version, in addition to that fitted to other Dynamique S models includes air conditioning (a £525 option on other Dynamique S versions), hands free keycard with reach adjustable steering (normally a £275 option), part leather upholstery, leather steering wheel, front and rear carpet mats, Zinc grey centre console with matching dashboard inserts and air vent surrounds. Distinguishing it on the outside from other Dynamique S versions, are 16-inch ‘Lyria’ alloy wheels.

The new engine will also be available in a sportier GT version in the future, with suspension and exterior changes. The GT will be positioned directly below the Clio Renaultsport 197 version, and above the Dynamique S 138, and will compete with mainstream supermini hot hatches like the Ford Fiesta ST and Peugeot 207 GT Turbo 1.6, offering power around 140hp – 150hp.

The Clio Dynamique S 138 is available to order from November 1 at £12,810.