And should the German carmaker ever decide to produce the M1 Homage, it will go into battle against the likes of the new Audi R8, the Ferrari F430, Porsche 911 GT3 and Lamborghini Gallardo.

BMW unveiled the M1 Homage concept car over the weekend at the annual Concorso d’Eleganza 2008 di Villa d’Este in Italy.

The stunning concept M1 takes the original design with thick, chunky proportions and design features which pay tribute to the 1970s classic.

Read our ultimate guide to the 1978 BMW M1 supercar

The BMW M1 concept features a long engine compartment and a stretched window line with the “Hofmeister” kink along the side.

At the front, the signature BMW ‘kidney’ grille also forms part of the car’s aerodynamics, guiding air to cool the engine.

And BMW has taken inspiration from aircraft design, with the car boasting ‘sophisticated air ducting’ throughout the striking bodyshape.

BMW has also stayed true to the original – the BMW M1 Homage concept features a mid-mounted engine and rear-wheel-drive.

The German carmaker has not released any details on the engine powering the BMW M1 Homage, but we can expect to see the 420bhp 4-litre V8 as used in the new BMW M3, or the 507bhp 5-litre V10 engine used in the BMW M5 and M6.

Car history: the BMW M3

The original BMW M1 unveiled in the 1970s featured a completely new 3.5-litre straight six engine which later found its way into the first M5.

But don’t expect to see the stunning BMW M1 Homage concept on UK roads – the supercar concept is a design and technical direction for the German carmaker.

Adrian van Hooydonk, design director for BMW, said: “The BMW M1 Homage clearly manifests the creativity and potential of the BMW design team.

“A project such as this is a valuable source of inspiration for our day-to-day work.”

View more images of the BMW M1 Homage concept car