From GMM

Toyota Motor Corporation will announce on Wednesday its decision to pull out of formula one with immediate effect.

Citing sources with prior knowledge of the news, multiple Japanese media reports carried the story, including the major daily Mainichi Shimbun as well as the Tokyo based news agency Kyodo.

A extraordinary board meeting is scheduled to formalise the decision, with president Akio Toyoda to front a news conference in Tokyo immediately afterwards.

F1 chief executive Bernie Ecclestone told the Daily Telegraph that Toyota's decision to withdraw would be a breach of the 2012 Concorde Agreement.

"It's signed by Toyota Motor Company so I very much doubt they would not go through with something they have already signed," he said. "They are not the sort of people to back out of a deal like that."

While yet another blow to F1, the news would be very good for BMW-Sauber, whose new owners Qadbak were waiting for a confirmed 2010 team to withdraw in order to gain entry to next year's grid.

"Another team pulling out is the easiest way (to be in F1) from our perspective," team boss Mario Theissen said in Abu Dhabi last weekend.