It's been a while since we've heard anything about Subaru's version of the Toyota FT-86/FR-S, but the engineers at Suby have been hard at work on the new model. A Subaru bodied version of the car (looking like a WRX Coupe) was recently spied doing hot weather testing in Death Valley.

The photos clearly show a hood scoop, suggesting a top-mount intercooler and turbocharged boxer engine. If that's the case, we could look forward to a solid 265-hp from the more hard-core Subaru version of the Toyobaru. Previous reports have suggested the car will be rear-wheel drive only, although AutoExpress is suggesting an AWD setup will be included. We're inclined to believe that is possible, as the car is based on the AWD Legacy platform.

Toyota is on track to launch its version of the FT-86 (believed to get the FR-S badge in production forum), in November of 2011, so expect to Subaru model to debut shortly thereafter.

More: Subaru FT-86 (WRX Coupe) Spied Hot Weather Testing in Death Valley on AutoGuide.com

For the first time in two decades, Subaru is expected to debut an all-new 4-cylinder boxer engine later this year, which will be used in most models in its lineup to help improve fuel economy.

According to a report by Japan's Nikkei business daily, the new engine will be between 2.0- and 2.5-liters with improved fuel economy by roughly 10 percent and will be used in everything from the Legacy to the Impreza. First, however, it will launch in the Forester. The new engine is also slated to get a CVT transmission – a notable improvement over the 4-speed auto-box in the Forrester and Impreza.

Subaru has confirmed that a new engine is being prepped to debut but no details have been provided.

It's possible that the new engine could use both direct-injection and a start-stop system, two technologies that were showcased on the Hybrid Tourer Concept – a hybrid model that Subaru unveiled at last year's Tokyo Auto Show. Subaru is also expected to deliver a hybrid model in 2012 based on an existing vehicle.

More: Subaru to Unveil New 4-Cylinder Boxer Engine This Year on AutoGuide.com

With seven years of roaming the streets (in Japan), the second generation Subaru Impreza body became a familiar sight to many. And now that the third generation Impreza STi is out, we're expecting to see less and less of the second gen bodies. But leave it to the crazy tuners in Japan to come up with this idea: taking a second generation model and outfit it with a front end from the the current model.

Some of us here at AutoGuide think it's just too weird. The second-gen STi is notorious for its boxy shape and large headlights while the new generation is more streamlined and bubbly. Pairing the two together doesn't quite flow well. (Some other crazy folks here in the office are big fans and made me write this sentence).

Complementing the transformation is also a full body kit from Charge Speed, which definitely gives the car a much sportier and more aggressive profile. Thumbs up for being unique, but much like the R35 front end on an R34 Skyline, we think they should belong on their respective bodies.

More: Japanese Tuner Gives Second-Gen Subaru Impreza STi a Third-Gen Facelift on AutoGuide.com

According to the latest reports out of Japan, Subaru's version of the Toyota FT-86 (FR-S) is still on track with plans to deliver a higher-powered version of the two-door coupe. Believed to be powered by the same turbocharged 2.0-liter engine that powers the WRX STI it will make around 260-hp – a 60-hp jump over the Toyota version. With Subaru opting to offer the WRX and STI models with a larger 2.5-liter engine in North America, this does raise the possibility that the same powerplant will be offered in the FT-86 variant here as well. (Or maybe we'll finally get the rev-happy 2.0).

As for the vehicle's shape, it will retain the same silhouette, but gain more aggressively designed Subaru bumpers, as well as a likely hood scoop to work with a top-mount intercooler.

We recently reported that despite rumors, Toyota is on-track to deliver it's version of the FT-86 (reportedly called the FR-S when it hits dealers) in 2011. Initial testing has already begun and Subaru engineers are reportedly taking the initiative on this project as they are more familiar with the vehicle's underpinnings, which consist of a modified Legacy platform and Impreza rear suspension.

Unfortunately the more hard-core Subaru version will cost more as well, lifting it out of the realm of being an entry-level sports car, with pricing not likely to dip below the $25,000 mark.

Subaru's version of the FT-86 is likely to debut some time after the Toyota version, which is scheduled out in 2011.

More: Subaru FT-86 to Boast as Much as 260-Horsepower on AutoGuide.com