First attempt

src/Features/CSharp/Portable/IntroduceVariable/CSharpIntroduceVariableService_IntroduceLocal.cs

@@ -9,10 +9,12 @@
 using System.Diagnostics;
 using System.Linq;
 using System.Threading;
-using System.Threading.Tasks;
 using Microsoft.CodeAnalysis;
 using Microsoft.CodeAnalysis.CodeActions;
+using Microsoft.CodeAnalysis.CodeCleanup;
+using Microsoft.CodeAnalysis.CSharp.CodeStyle.TypeStyle;
 using Microsoft.CodeAnalysis.CSharp.Extensions;
+using Microsoft.CodeAnalysis.CSharp.Simplification;
 using Microsoft.CodeAnalysis.CSharp.Syntax;
 using Microsoft.CodeAnalysis.Editing;
 using Microsoft.CodeAnalysis.Formatting;
@@ -28,6 +30,7 @@ internal sealed partial class CSharpIntroduceVariableService
 {
     protected override Document IntroduceLocal(
         SemanticDocument document,
+        CodeCleanupOptions options,
         ExpressionSyntax expression,
         bool allOccurrences,
         bool isConstant,
@@ -47,14 +50,23 @@ protected override Document IntroduceLocal(
             ? TokenList(ConstKeyword)
             : default;
 
+        var updatedExpression = expression;
+
+        if (options.SimplifierOptions is CSharpSimplifierOptions csOptions && csOptions.ImplicitObjectCreationWhenTypeIsApparent.Value
+            && csOptions.GetUseVarPreference() == UseVarPreference.None)
+        {
+            if (expression is ObjectCreationExpressionSyntax oce)
+                updatedExpression = ImplicitObjectCreationExpression(oce.ArgumentList, oce.Initializer);
+        }
+
         var declarationStatement = LocalDeclarationStatement(
             modifiers,
             VariableDeclaration(
                 GetTypeSyntax(document, expression, cancellationToken),
                 [VariableDeclarator(
                     newLocalNameToken.WithAdditionalAnnotations(RenameAnnotation.Create()),
                     argumentList: null,
-                    EqualsValueClause(expression.WithoutTrivia()))]));
+                    EqualsValueClause(updatedExpression).WithoutTrivia())]));
 
         switch (containerToGenerateInto)
         {

src/Features/CSharpTest/IntroduceVariable/IntroduceVariableTests.cs

@@ -4283,6 +4283,56 @@ public T this[int i]
         await TestInRegularAndScriptAsync(code, expected, options: ImplicitTypingEverywhere());
     }
 
+    [Fact]
+    public async Task TestIntroduceLocalWithTargetTypedNew()
+    {
+        var code =
+"""
+using System;
+class SampleType
+{
+    public SampleType() 
+    {
+        int sum = Sum([|new Numbers()|]);
+    }
+
+    private int Sum(Numbers numbers) 
+    {
+        return 42;
+    }
+
+    private class Numbers {}
+}
+""";
+
+        var expected =
+"""
+using System;
+class SampleType
+{
+    public SampleType() 
+    {
+        Numbers {|Rename:numbers|} = new();
+        int sum = Sum(numbers);
+    }
+
+    private int Sum(Numbers numbers) 
+    {
+        return 42;
+    }
+
+    private class Numbers {}
+}
+""";
+
+        OptionsCollection optionsCollection = new(GetLanguage())
+        {
+            { CSharpCodeStyleOptions.ImplicitObjectCreationWhenTypeIsApparent, new CodeStyleOption2<bool>(true, NotificationOption2.Warning) },
+        };
+
+        await TestInRegularAndScriptAsync(code, expected, options: optionsCollection);
+    }
+
     [Fact]
     public async Task TestIntroduceFieldInExpressionBodiedPropertyGetter()
     {

src/Features/Core/Portable/IntroduceVariable/AbstractIntroduceVariableService.IntroduceVariableCodeAction.cs

@@ -64,7 +64,7 @@ private async Task<Document> GetChangedDocumentCoreAsync(CancellationToken cance
             }
             else if (_isLocal)
             {
-                return _service.IntroduceLocal(_semanticDocument, _expression, _allOccurrences, _isConstant, cancellationToken);
+                return _service.IntroduceLocal(_semanticDocument, Options, _expression, _allOccurrences, _isConstant, cancellationToken);
             }
             else
             {

src/Features/Core/Portable/IntroduceVariable/AbstractIntroduceVariableService.cs

@@ -13,6 +13,7 @@
 using Microsoft.CodeAnalysis.CodeActions;
 using Microsoft.CodeAnalysis.CodeCleanup;
 using Microsoft.CodeAnalysis.Editing;
+using Microsoft.CodeAnalysis.Diagnostics;
 using Microsoft.CodeAnalysis.Formatting;
 using Microsoft.CodeAnalysis.Internal.Log;
 using Microsoft.CodeAnalysis.LanguageService;
@@ -50,7 +51,7 @@ internal abstract partial class AbstractIntroduceVariableService<TService, TExpr
     protected abstract bool IsExpressionInStaticLocalFunction(TExpressionSyntax expression);
 
     protected abstract Document IntroduceQueryLocal(SemanticDocument document, TExpressionSyntax expression, bool allOccurrences, CancellationToken cancellationToken);
-    protected abstract Document IntroduceLocal(SemanticDocument document, TExpressionSyntax expression, bool allOccurrences, bool isConstant, CancellationToken cancellationToken);
+    protected abstract Document IntroduceLocal(SemanticDocument document, CodeCleanupOptions options, TExpressionSyntax expression, bool allOccurrences, bool isConstant, CancellationToken cancellationToken);
     protected abstract Task<Document> IntroduceFieldAsync(SemanticDocument document, TExpressionSyntax expression, bool allOccurrences, bool isConstant, CancellationToken cancellationToken);
 
     protected abstract int DetermineFieldInsertPosition(TTypeDeclarationSyntax oldDeclaration, TTypeDeclarationSyntax newDeclaration);

src/Features/VisualBasic/Portable/IntroduceVariable/VisualBasicIntroduceVariableService_IntroduceLocal.vb

@@ -6,13 +6,15 @@ Imports System.Threading
 Imports Microsoft.CodeAnalysis
 Imports Microsoft.CodeAnalysis.CodeActions
 Imports Microsoft.CodeAnalysis.Formatting
+Imports Microsoft.CodeAnalysis.CodeCleanup
 Imports Microsoft.CodeAnalysis.VisualBasic
 Imports Microsoft.CodeAnalysis.VisualBasic.Syntax
 
 Namespace Microsoft.CodeAnalysis.VisualBasic.IntroduceVariable
     Partial Friend Class VisualBasicIntroduceVariableService
         Protected Overrides Function IntroduceLocal(
                 document As SemanticDocument,
+                options As CodeCleanupOptions,
                 expression As ExpressionSyntax,
                 allOccurrences As Boolean,
                 isConstant As Boolean,

src/Workspaces/SharedUtilitiesAndExtensions/Compiler/CSharp/Simplification/CSharpSimplifierOptions.cs

@@ -28,6 +28,7 @@ internal sealed record class CSharpSimplifierOptions : SimplifierOptions, IEquat
     [DataMember] public CodeStyleOption2<bool> AllowEmbeddedStatementsOnSameLine { get; init; } = CodeStyleOption2.TrueWithSilentEnforcement;
     [DataMember] public CodeStyleOption2<PreferBracesPreference> PreferBraces { get; init; } = s_defaultPreferBraces;
     [DataMember] public CodeStyleOption2<bool> PreferThrowExpression { get; init; } = CodeStyleOption2.TrueWithSuggestionEnforcement;
+    [DataMember] public CodeStyleOption2<bool> ImplicitObjectCreationWhenTypeIsApparent { get; init; } = CodeStyleOption2.FalseWithSilentEnforcement;
 
     public CSharpSimplifierOptions()
     {
@@ -43,6 +44,7 @@ public CSharpSimplifierOptions(IOptionsReader options)
         AllowEmbeddedStatementsOnSameLine = options.GetOption(CSharpCodeStyleOptions.AllowEmbeddedStatementsOnSameLine);
         PreferBraces = options.GetOption(CSharpCodeStyleOptions.PreferBraces);
         PreferThrowExpression = options.GetOption(CSharpCodeStyleOptions.PreferThrowExpression);
+        ImplicitObjectCreationWhenTypeIsApparent = options.GetOption(CSharpCodeStyleOptions.ImplicitObjectCreationWhenTypeIsApparent);
     }
 
     public UseVarPreference GetUseVarPreference()