London, July 29 - After Japanese car giant Honda, German manufacturer BMW is all set to become the second team to quit the Formula One circuit.

The Daily Telegraph reported Wednesday that BMW will soon announce its withdrawal from Formula One at the end of the current season. BMW's pull out could also prompt other car manufacturers like Renault and Toyota to take such decisions

World motorsports body FIA has been fearing this situation right from the day Honda quit in December due to the global financial downturn. BMW's exit will be a big blow for Bernie Ecclestone, the chief executive of Formula One Management.

Norbert Reithofer, the chairman of the BMW board, and Klaus Draeger, the director for development, and BMW motorsport director Mario Theissen are expected to make the announcement any time at its headquarters in Munich.

The Formula One management thought that all five remaining manufacturers would pledge themselves to the sport until 2012 by signing a new Concorde Agreement with CVC Capital Partners, the commercial rights holder, and the FIA, the sport's governing body.