'Obviously, this decision was a difficult one for us.'

According to the Bild Zeitung newspaper, Japanese carmaker Toyota is also considering pulling out of the sport while Honda withdrew at the end of last year.

FIA has argued that it is addressing the problems and pointed to the new cost-cutting measures introduced this season as well as the Concorde Agreement set to be signed later this week.

'These measures were needed to alleviate the pressure on manufacturers following Honda's withdrawal but also to make it possible for new teams to enter,' it said.

'Had these regulations not been so strongly opposed by a number of team principals, the withdrawal of BMW and further such announcements in the future might have been avoided.'