Abstract: A power transfer unit for a vehicle is provided having a transfer sleeve, a flanged ring gear, an output shaft, and a clutching assembly. The transfer sleeve, the flanged ring gear, and the clutching assembly are disposed in a housing about an axle shaft connected to a center differential. The transfer sleeve is drivingly engaged with a carrier of the center differential and the flanged ring gear is disposed about the transfer sleeve and drivingly engaged with the output shaft. The clutching assembly includes a locking collar and a clutch. The clutch may be engaged to transfer torque through the transfer sleeve to the output shaft through the flanged ring gear and the locking collar may be engaged to drivingly engage the transfer sleeve with the output shaft through the flanged ring gear.