The Formula One Teams' Association has announced it is setting up a breakaway championship.
Following a four-hour meeting at Renault's Enstone factory, the eight members of FOTA - Ferrari, McLaren, Renault, BMW Sauber, Toyota, Brawn, Red Bull Racing and Scuderia Toro Rosso - said they had grown frustrated with the FIA's stance against the organisation, and had no option but to create a series of their own.
"The teams cannot continue to compromise on the fundamental values of the sport and have declined to alter their original conditional entries to the 2010 World Championship," said a statement issued by FOTA after the meeting.
"These teams therefore have no alternative other than to commence the preparation for a new Championship which reflects the values of its participants and partners. This series will have transparent governance, one set of regulations, encourage more entrants and listen to the wishes of the fans, including offering lower prices for spectators worldwide, partners and other important stakeholders.
"The major drivers, stars, brands, sponsors, promoters and companies historically associated with the highest level of motorsport will all feature in this new series."
F1 teams were given until Friday evening to remove the conditions attached to the provisional entries they posted earlier this month, or risk being left off the grid in 2010.
FIA president Max Mosley wrote to the teams yesterday offering them some of the concessions that they wanted to see regarding governance of the sport, but made it clear that he was sticking to plans for the introduction of a budget cap.