Ford Motor Co.'s new 5.0L V-8, codenamed “Coyote,” will launch next year in the '11 Ford Mustang, a source close to the program tells Ward's.

The engine will replace the Mustang's aging 4.6L modular V-8, the source says. The new V-8's aluminum block will be sourced from Ford's engine plant in Romeo, Ward's also learns.

Sources said last year the engine is destined for Ford's Essex plant in Windsor, ON, Canada.

Ford officials refuse to discuss the program, but high-ranking executives have hinted the auto maker is prepared to fend off Mustang rivals, such as the Chevy Camaro and Dodge Challenger. Both competitors boast more powerful V-8s.

The first iteration of the 4.6L engine debuted in 1990. The current V-8 generates a relatively modest 319 hp.

The 3-valve 5.0L V-8 is expected to produce about 400 hp in normally aspirated form, while a boosted version could make more than 500 hp, the source tells Ward's.