Update: Chrysler CEO Robert Nardelli hinted earlier this month that several unexpected vehicles and platforms could be unveiled by as early as next year in response to changing market conditions in the U.S. and demand for smaller and more fuel-efficient vehicles. While Chrysler has confirmed that it’s developing its own global midsize platform - internally known as ‘Project D’ – vehicles based on the new architecture aren’t expected to be introduced for several years at least.

In the meantime, Chrysler is considering jointly producing vehicles with another carmaker and has been rumored to be in talks with Nissan, Chery and even Fiat and Tata.

According to the Wall Street Journal, Chrysler is in negotiations with Nissan over a deal that would see the Japanese carmaker supply midsize sedans to Chrysler for sale in North America. Both companies have been in talks since April, when they signed a tentative agreement to supply each other with vehicles.

A spokeswoman for Nissan confirmed that there had been talks between the two carmakers but declined to comment on the latest claims about a new midsize sedan.

Original: After months of speculation Nissan and Chrysler have announced a new partnership, which will see the two carmakers build vehicles for each other for sale in the U.S., Europe and other markets by 2010. Nissan will produce a unique version of its Versa compact (pictured) for Chrysler, which plans to sell the car in North America, Europe and other global markets by the end of the decade. Chrysler will supply Nissan with a full-size pickup that’s set to go on sale in North America in 2011.

The Chrysler version of the Versa will be manufactured at Nissan’s Oppama Plant in Japan. The car will have its own unique styling and specifications levels. In January, the two carmakers also announced Nissan would supply Chrysler with a Versa-based sedan for sale in South America starting next year.

Nissan’s new pickup will be manufactured by Chrysler at its Saltillo factory in Mexico, reports Automotive News. To free up capacity for the new truck, Chrysler will shift Dodge Ram production to its St. Louis North and Michigan plants.

In a press release the two carmakers also agreed to maintain an open dialogue to explore further product-sharing opportunities, which means this isn’t likely to be the last we hear of Nissan and Chrysler swapping models.