Top Oxfordshire Formula One team has refused to rule out the possibility of abandoning the UK due to a ban on tobacco sponsorship.

A spokesman for Enstone-based F1 team Renault, sponsored by Japanese tobacco brand Mild 7, has declined to comment on the likelihood that the team, which employs several hundred people, could be considering moving out.

It follows a warning from David Richards, boss of Brackley-based British American Racing (Bar), that his F1 team was considering moving to Japan.

He was reacting to news from the European Union that it plans to bring in a tobacco sponsorship ban in July next year.

Mr Richards, who also runs the Prodrive rally organisation in Banbury, sparked speculation that Bar -- backed by the Lucky Strike cigarette brand -- could be the first of many to head to the Far East.

But Sir Frank Williams, head of the Williams F1 team, has pledged to keep his organisation based at Grove.

A key factor in the decision is that Williams F1 is not sponsored by a tobacco company. Instead it is backed by anti-smoking patch product NiQuitin CQ. Sir Frank said: "Williams F1 has no relations with tobacco companies and as a consequence does not consider the matter to be of direct relevance to its business."

Paul Fortune, managing director of Abingdon specialist employment agency Recruitment In Motorsport, said: "Between 3,000 and 5,000 people work in the motor racing business in Oxfordshire.

"Employees at Bar have been told of the possibility of the company relocating and we have had some telephone calls from people thinking of getting new jobs as a result."

F1 promoter Bernie Ecclestone has predicted the hub of the industry will move out of Europe in the next ten years.