Honda Racing's hopes of competing in Formula 1 this season appear to have suffered a crucial blow as their Japanese bosses have stated they cannot find a "serious buyer" for the team.

The news comes after F1 supremo Bernie Ecclestone revealed an offer to help with a proposed management buy-out was rejected by chief executive Nick Fry and team boss Ross Brawn.

Honda surprisingly pulled out of F1 in early December, citing the global economic crisis, with the team immediately put up for sale.

Hopes were high they would be saved, despite the overheads needed to keep a team on the grid, so sparing the 700 jobs – including that of driver Jenson Button – at the team's Brackley HQ.

But the chief executive of Honda Motor Co. has confirmed they are struggling to find their knight in shining armour.

Speaking at a news conference, Takeo Fukui said: "There are various offers for the team, but we have not seen any serious buyer yet.

"We find the sale process difficult."

Fukui's comments come after a week of frenzied speculation relating to Sir Richard Branson's Virgin Group.

The Kidlington-based businessman, though, made it clear over the weekend that although he loves F1, any entry would be conditional in terms of costs and the sport becoming more environmentally-friendly.

There have also been constant rumours of a management buy-out led by Fry and Brawn, but all within Honda have remained tight-lipped.