Atari and Eden Games have announced the development of Test Drive Unlimited 2 for Xbox 360, PS3 and PC.

Test Drive Unlimited 2 promises to expand on the traditional racing experience providing gamers with M.O.O.R.: Massively Open Online Racing; immersing drivers in a persistent online environment. Players will compete, team up, and share their achievements and creations online.

The sequel will also feature vehicle damage, weather effects, day and night cycles, and a brand new island to explore.

Single and multiplayer experiences are said to be seamlessly blended together, creating a dynamic game world of unique content and challenges. A revamped single-player narrative mode can be played offline or as part of the multiplayer experience.

"After the highly successful Test Drive Unlimited which redefined the genre with massively open online racing, Test Drive Unlimited 2 will be an innovative evolution in racing games, expanding its unparalleled multiplayer experience and immersing players in a world full of new online content and lifestyle customization," said Jeff Lapin, CEO of Atari, SA. "The game fits squarely into our strategy of moving online and generating new revenue streams while maintaining our current retail business."

Players will define their online persona through the customisation of their vehicles, and the acquisition of property, clothing and everything else that comes with a luxurious car-based lifestyle.

No release date has been announced.