The Trials HD sequel will see the stunt racing title add outdoor racing, competitive multiplayer, and the ability to share custom tracks with anyone in the world.
"Trials Evolution is more than just a sequel to Trials HD," said creative director Antti Ilvessuo.
"We listened carefully to all the feedback we received from the previous game and added it to our own vision of what the ultimate Trials game could be, coming up with a gamer's wish list of must-play features."
Trials HD has become one of the most successful Xbox Live Arcade titles since its 2009 release, selling more than 300,000 copies.
It was followed up by two downloadable content packs, the BIG Pack and Big Thrills.
Trials Evolution will be available on Xbox Live Arcade later this year.
Watch Trials Evolution's first screenshot and announcement teaser trailer below: