Ford will use Volkswagen Group's MEB electric-car platform to underpin an SUV, Autocar magazine reported.
The model is likely to have a similar wheelbase to the VW ID4 compact crossover at 2765 mm (9 feet), Autocar said.
The magazine said the Ford version is likely to introduced with power output of between 146 hp and 201 hp.
Ford and VW announced an industrial cooperation in 2019 for commercial vans and midsize pickups that was subsequently expanded to autonomous and electric vehicles.
Ford's MEB-based EV is being designed and engineered at the automaker's European development center in Merkenich, near Cologne, Germany. The car is expected to go on sale in 2023.
The model will be built at Ford's factory in Cologne, which is currently undergoing a $1 billion (£720 million) refit to become the brand's EV hub. Ford has said its passenger car range in Europe will be all-electric by 2030.
Ford has confirmed that it will build an MEB-based electric car in Cologne but has not said what type of vehicle it will be. The company did not immediately request for a comment on the Autocar report.