Sebastien Loeb in the new Citroen C4 on the Monte Carlo Rally

The 32-year-old, who has won three titles, carries a 24-second lead over Citroen team-mate Dani Sordo.

He is also 29.1 seconds ahead of former world champion and Ford Focus driver Marcus Gronholm.

There are six special stages on Friday that will cover 160km of the race's 329km total distance.

Loeb completed the 28.5km opening special stage from Saint-Jean en Royans to Col de Lachau in 13 minutes 58.7 seconds, with Sordo 8.5 seconds behind and Gronholm 14.8 seconds back.

The Frenchman further extended his lead in the 17.87km stage from La Cime du Mas to Col de Gaudissart.

Loeb is seeking to equal the record set by Finland's Tommi Makinen, who won four straight overall titles from 1996 to 1999.

The Monte Carlo Rally is based in the city of Valence this year - its 75th anniversary - moving away from the Principality.

The move allows the return to the route of some of the historic event's classic stages, although the famous climb up to the Col du Torini has been axed.

Latest standings
1. S Loeb, Citroen C4 23min 29.9sec
2. D Sordo, Citroen C4 23min 53.8sec
3. M Gr�nholm, Ford Focus RS 23min 59.0sec
4. M Hirvonen, Ford Focus RS 24min 21.6sec
5. P Solberg, Subaru Impreza 24min 27.5sec
6. C Atkinson, Subaru Impreza 24min 30.0sec
7. M Stohl, Citroen Xsara 24min 31.6sec
8. T Gardemeister, Mitsubishi Lancer 24min 36.0sec
9. J Kopecky, Skoda Fabia 24min 43.1sec
10 J-M Cuoq, Peugeot 307 24min 59.0sec