Pronounced ‘Ex-ay-o’, the new model is a new entrant for Seat into the upper-medium saloon market and will see it go head to head with Ford’s Mondeo and Vauxhall’s new Insignia.
Seat believes entry into the new segment will boost its annual registrations by an 4,000 before the end of 2009.
First pictures are expected to be revealed before the Exeo's debut at the Paris Motor Show in autumn.
The Exeo is intended to give Seat a significantly higher profile in the marketplace, according to Seat UK director Peter Wyhinny.
Based on the running gear of the outgoing Audi A4, the car will be pitched to offer a high-end alternative in the D-segment – but the sales growth is likely to be underwritten by ‘realistic’ pricing.
Wyhinny said: "Using a group platform gives us a head start in the segment and Audi has an integrity beyond question.
"Our prices have yet to be fixed, but the aim is to blend the quality of Audi with the high value that reflects our brand approach and I am confident it will be a success. This will be a high value proposition."