Saloon and SW models of the 407 range will be available with the new 170bhp 2.2-litre HDi engine soon.
Peugeot says the new engine is the first to feature twin-turbochargers on a four-cylinder diesel engine.
The 2.2-litre HDi is an evolution of the existing 2.2 DW12 TED4 engine. It is the fourth phase of the cooperation between PSA Peugeot Citroen and the Ford Motor Company (initiated in 1998).
The new HDi 170 is Euro IV compliant and is mated to a six-speed manual transmission.
The engine will be available in 407 Sport derivatives, and is priced at £21,100 on-the-road for the Saloon and £22,300 OTR for the SW version.