The system would also give a warning if someone is trying to break into the car, or has bumped into it while trying to park in front or behind.
The car would send signals to the phone if the motion censors are activated.
The technology is already available on Volvos sold overseas and the company is developing it for use in Australia on its new V40 model. It starts at 35,000 dollars.
A Volvo spokesperson told the publication that they are keen to hit the market as soon as possible.
However, the iPhone app cannot be fitted to Volvo models sold before the technology is introduced, as it needs to be installed at the factory.
Volvo said that it hopes that the technologies would be available by this time next year.