A new Rolls-Royce will join the British firm's line-up in 2010.

Codenamed RR4 for the time being, the new car is smaller and 'more informal' than the Phantom.

Chief designer Ian Cameron said: "The RR4 has a more informal presence than the Phantom and a greater emphasis on driving.

"In design terms, this is expressed through its slightly smaller dimensions and more organic form, yet with powerful, purposeful proportions."

Rolls-Royce has confirmed it has extended its paint, wood and leather workshops to cope with expected demand for the RR4 when it goes on sale in 2010.

The Rolls-Royce factory in Goodwood, Sussex has been reorganised to deal with the added production of the new model.

Rolls will release more details of the RR4 in 2009 ahead of the car going on sale.

It's expected the new model will share some chassis parts with the next generation BMW 7 Series, but Rolls-Royce says the RR4 will be a unique model that sits alongside the Phantom.

This suggests the RR4 will not be a cheaper Rolls and prices may begin at around £270,000 ($530,000 CAN).