'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.'

Mercedes, meanwhile, said BMW's decision would have 'no effect' on its future commitment to F1.

'We regret the exit of BMW from Formula One,' a spokesperson said.

It remains unclear how the BMW-Sauber operation in Munich and Switzerland's Hinwil will be run down and how many of the approximate 700 employees will lose their jobs.

'As we only made this decision yesterday, we are not in a position to give any concrete details,' said BMW's head of development Klaus Draeger.

'We will look at and evaluate several different scenarios in an attempt to find a solution for those employees involved in Hinwil and with the Formula One project.'

Despite the FIA's claims to the contrary, BMW's decision is certain to have been influenced by the new Concorde Agreement which is due to be signed later this week and will regulate how F1 is run until 2012.

However, the team's performances on the track are also certain to have been a factor.

BMW lies a lowly eighth in the constructors' standings after 10 of 17 races while drivers Nick Heidfeld and Kubica sit 13th and 15th, respectively, in the drivers' championship table.

'Unfortunately, we have not been able to meet our expectations this season,' admitted Draeger.

In 2007, BMW finished second in the constructors' championship although this position was helped by the disqualification of McLaren-Mercedes over a spying affair. Before launching its own racing team, BMW developed engines for the Williams team.