In September 2007, at the IAA motorshow, Alpina replaced the B5 with the even faster B5 S with 530 bhp and 725 Nm.

The B5 S was available both in Limousine and Touring versions.

As BMW ended E60 production, the B5 S Limousine was phased out in 2009 and the B5 S Touring in 2010.

From March 2007, the B5 has a new generation ZF 6HP26 6-speed gearbox, which shifts considerably faster.

As an option, a limited slip differential is available.

The B5 S differs from the facelift version of the B5 only in terms of engine management and gearbox software. Therefore facelift versions of the B5 can be upgraded to B5 S specification.

There are no changes to suspension or brakes from the B5.

The sedan model received new 20-inch wheels with 245/35 and 285/30 tires. As an option, 19-inch wheels are available with 245/40 and 275/35 tires.

Optionally, the B5 S was available with a diffusor integrated in the rear bumper. Most B5 S were delivered with this option.

Acceleration from 0-100kph improved to 4,6 seconds.

Top speed increase to 317kph for the sedan and 313kph for the Touring model.