A rotary engine includes a first rotary unit operable to provides a first phase of compression to a fresh air charge drawn in through an inlet port to the first rotary unit. A second rotary unit in communication with the first rotary unit through a first passage, the second rotary unit operable to provide a second phase of compression to the first phase of compression, a combustion phase and a first phase of expansion, the second rotary unit in communication with the first rotary unit through a second passage such that the first rotary unit provides a second phase of expansion to the first phase of expansion and an exhaust phase that exhausts the first rotary unit via an exhaust port. A first fuel injector is in communication with the second rotary unit operable to initiate the combustion phase and a second fuel injector is in communication with the first rotary unit operable to selectively initiate augmented operation.