Toyota originally planned to sell the third-generation Prius but changed its mind, the newspaper said, citing sources with FAW Toyota Automobile Co. and Toyota's China representative office in Beijing.

The newspaper did not indicate when the plug-in Prius will enter the Chinese market.

Toyota built the second generation of its conventional Prius at FAW Toyota's plant in the northeast China city of Changchun.

But sales were slow, so Chinese production was halted in late 2009.

Last year, Toyota sold 805,203 vehicles in China. But it only sold one Prius, in part because the vehicle did not qualify for significant sales incentives.

Instead, the Chinese government has offered big subsidies for "pure" electric vehicles and plug-in hybrids.

Under a pilot subsidy program enacted last June, Beijing offers up to 50,000 yuan ($7,600) for plug-ins and 60,000 yuan for electric vehicles purchased in five cities.

By contrast, Prius purchasers receive a comparatively meager 3,000 yuan subsidy.