The sedan, whose global roll out will begin in 2015, will be the first user of the 'Ingenium' engines in four-cylinder two-litre petrol and diesel variants.
"The first of our Ingenium engine range will be used in our all-new mid-sized Jaguar sports sedan. That car will be called the Jaguar XE, and it will be unveiled in production form later this year," Jaguar Land Rover (JLR) Chief Executive Officer Ralf Speth said in a statement.
The XE will be the first product from the new advanced aluminium architecture which was showcased in the C-X17 concept car in 2013, he added.
The new sedan brings to customers all benefits of aluminium: lightness and stiffness for unbeatable handling, performance, refinement and efficiency, he added.
The name of the Jaguar XE follows a logical progression, positioned alongside the XF and XJ saloons in the range, the company said.
In 2008, the Jaguar Land Rover company was established when Tata Motors acquired Jaguar and Land Rover businesses from Ford.