The Formula One Teams' Association have announced they are to form a breakaway series, causing the greatest upheaval in the sport's 60-year history.

Following a meeting on Thursday night of the eight teams that form FOTA - Ferrari, McLaren, Enstone-based Renault, Toyota, BMW Sauber, Brackley's Brawn GP, Red Bull Racing and Toro Rosso - they have all declined to enter F1 for 2010 despite weeks of negotiations with FIA president Max Mosley.

Outlining the major differences with the FIA, and confirming their intentions, a statement read: "It has become clear 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.

"These teams, therefore, have no alternative other than to commence the preparation for a new championship."

The statement continued: "Since the formation of FOTA last September the teams have worked together and sought to engage the FIA and commercial rights holder (Bernie Ecclestone), to develop and improve the sport.

"Unprecedented worldwide financial turmoil has inevitably placed great challenges before the F1 community.

"FOTA is proud that it has achieved the most substantial measures to reduce costs in the history of our sport.

"In particular, the manufacturer teams have provided assistance to the independent teams, a number of which would probably not be in the sport today without the FOTA initiatives.

"The FOTA teams have further agreed upon a substantial voluntary cost reduction that provides a sustainable model for the future.

"Following these efforts, all the teams have confirmed to the FIA and the commercial rights holder that they are willing to commit until the end of 2012.

"The FIA and the commercial rights holder have campaigned to divide FOTA. The wishes of the majority of the teams are ignored. Furthermore, tens of millions of dollars have been withheld from many teams by the commercial rights holder, going back as far as 2006. Despite this, and the uncompromising environment, FOTA has genuinely sought compromise."