The Germancarzone.com is reporting that BMW will indeed release a special edition 1 Series towards the end of the model run in mid-2010. It’s the same thing we’ve heard before with some new twists. The model will bridge the gap between the M3 and the current 135i in ways that the 335i cannot. While none of this information has been verified, it is similar to some rumors we’ve heard over the past year. The option will be limited to a new four cylinder turbo (120i?) and the 135i.

According to the article look for the 120i to have as much as 240bhp and the 135i to feature the revised twin turbo 3.0L inline six current in the F01 7 Series, potentially producing over 330bhp.

In addition to drivetrain improvements, GCZ is reporting (and again we have no verification on this) that the car will make use of such materials as carbon fiber to lighten things up a bit. Specifically they mention carbon roof, boot-lid and a loss of certain cabin comforts. The car could also feature upgraded suspension, brakes and a unique body kid (we’re betting this could be some version of the BMW Performance kit).

It will not be badged as an M but instead will feature the MotorSport badge. We’re really unsure on this one as it would make more sense for BMW to leverage their BMW Performance branding they’re currently building out throughout the world. Whatever it’s called it’ll be the most sought after 1er yet.