Honda dealers will get a hybrid version of the Jazz in early 2011.
Honda claims it is the world's first B-segment hybrid.
It will feature the same engine as the Insight hybrid; a 1.3-litre i-VTEC engine combined with a CVT gearbox, with an electric motor sandwiched between the two to create a parallel hybrid system.
The hybrid Jazz – like the Insight and Civic Hybrid models – will be capable of running on the electric motor alone under some medium and low speed conditions.
Honda said fuel consumption and CO2 emissions will be comparable to the Insight, which manages more than 60mpg and 105g/km CO2.
Exact figures will be revealed at the Paris Motor Show in late September.
Visually, this Jazz is distinguished from the current range by revised headlights with a blue surround, clear rear lights, new front grille, restyled bumpers and a chrome tailgate garnish.
Inside, the cabin has a darker single colour dashboard, which contrasts strongly with the blue lighting of the dials and dashboard instruments.
The new hybrid is also available with leather trim, the first time this has been available on a Jazz model in Europe.