You can pass a function to re.sub() that will allow you to do this, here is an example:
def upper_repl(match):
return 'GOO' + match.group(1).upper() + 'GAR'
And an example of using it:
>>> re.sub(r'foo([a-z]+)bar', upper_repl, 'foobazbar')
'GOOBAZGAR'