The much-discussed revival of the Toyota MR2 seems to be advancing, as a heavily disguised prototype was observed during development runs at the Toyota-owned Fuji Speedway in Japan.

Brief video clips and images posted online reveal a low-slung two-door coupe fitted with a mix of parts, including side air intakes that point to a mid-engined setup.

Although Toyota has not officially identified the vehicle, attention remains focused on either a new MR2 or an upcoming Celica, with prior reports indicating both projects are underway.

The test car differs markedly from the mid-engined GR Yaris M Concept previously used by Toyota, hinting that work has shifted to a purpose-built prototype or early engineering mule.

Externally, the mystery coupe shows what look like GR Yaris headlamps and rear lights, bold front and rear bumpers, widened wheel arches, a large front splitter, a swan-neck rear wing, and sizable intakes behind the doors to supply air to a likely mid-mounted engine.

Its overall shape also echoes the brand's 2023 FT-Se concept, long rumored to preview a future flagship sports car.

Should Toyota revive the MR2, it is expected to depart from the rear-wheel-drive layout of earlier generations in favor of an all-wheel-drive system.

Toyota engineers have noted that the drivetrain tested in the GR Yaris M Concept can adjust torque split between axles, routing all power rearward or sending up to half to the front wheels as needed.

Japanese reports suggest the production version may also include Torsen limited-slip differentials on both axles.

It remains uncertain if a manual gearbox will be offered alongside an eight-speed automatic, though fans are likely hoping for the manual option.

Power is anticipated from Toyota's new turbocharged G20E 2.0-litre four-cylinder petrol engine.

This unit is intended to supplant the 1.6-litre turbo three-cylinder found in the current GR Yaris and GR Corolla performance models.

Toyota has stated that the version in the GR Yaris M Concept delivers roughly 300-340kW, with engineers noting a higher-output variant using larger turbos could provide even greater performance.

A racing iteration is said to reach as much as 450kW, underscoring the engine's potential, although such figures are unlikely for road cars.

Rather than relying only on simulations, Toyota has refined its new performance components through motorsport competition.

The mid-engined GR Yaris M Concept has raced in Japan's Super Taikyu endurance series, giving engineers real-world track data on the new engine.

Toyota chairman Akio Toyoda has long endorsed this approach, maintaining that the firm's finest sports cars emerge from racing rather than office planning.

The method also aligns with Toyota's wider strategy of supporting multiple powertrains, including combustion, hybrid, battery-electric, and hydrogen options instead of focusing solely on electric vehicles.

Toyota has stayed quiet on where this new sports car will sit within its growing Gazoo Racing lineup.

The company has already confirmed a Celica revival, while trademark applications for the GR MR2 name have further fueled talk that both classic sports car badges may return.

If the reports hold true, the revived MR2 would join the GR86, GR Corolla, GR Yaris, the next Supra, and the forthcoming GR GT flagship in Toyota's expanding performance range.