The famous T16 name will return to international rallying in 2013 after Peugeot confirmed it would be rebranding its 208 Type R5 the 208 T16 when it battles for glory in the FIA European Rally Championship this season.

Peugeot is currently testing and developing its R5-specification challenger ahead of its planned competition debut in the latter part of 2013.

The 208 T16 will eventually succeed the 207 Super 2000 as the French make's flagship rally car.

The T16 name is famous throughout the world having adorned Peugeot's legendary 205 Group B rally car, which achieved considerable success in the mid-1980s.

ERC frontrunner and Peugeot factory driver Craig Breen is conducting much of the testing of the 208 T16. The Irishman tweeted: "An iconic name to follow what will be an iconic car..."

Meanwhile, Breen himself, has been keeping busy since his impressive run to second overall on Rally Liep?ja-Ventspils earlier this month. Not only has the 23-year-old signed a long-term agreement with V&V Sport Management, he has also been appointed a brand ambassador for Peugeot Ireland to help promote sales of the new 208 Active 1.4 HDI. The 208 contributed to a seven per cent market share growth for Peugeot in Ireland in January.

"This is incredible and beyond my dreams," said Breen. "I am really excited to work with a manufacturer like Peugeot Sport and to become a Brand Ambassador for Peugeot Ireland has really sealed the deal for me."

Breen is combining his ERC campaign with Peugeot Sport Academy-Saint?loc by testing the renamed 208 T16 R5 challenger.