Two-time world champion Fernando Alonso says he believes Formula 1 is finished, following the announcement yesterday of plans for a breakaway series.

Eight of Formula 1’s major teams, including the Enstone-based Renault team, declared an intention to set up a rival championship from 2010.

The Spaniard, who has a home in Oxford, says what will be left of the old F1 would be inferior.

“Formula 1 is finished,” Alonso said.

“It will be a standard engine, small teams and no drivers. This is not the Formula 1 that people want.”

The breakaway move is the latest chapter in the bitter row over budget cap proposals.

World motorsport boss Max Mosley wants to introduce a voluntary £40m budget cap to curtail a "financial arms race" among F1's teams.

But eight of them, under the umbrella of the Formula 1 Teams Association (FOTA), have strongly resisted Mosley's attempts to force this and other rule changes through.

Championship leaders Bra-wn GP, Ferrari, McLaren, Renault, Toyota, BMW Sau-ber, Red Bull Racing and Toro Rosso have taken the drastic action.

Speaking before the teams issued their breakaway threat, Alonso said: "I hope they find a solution, but these are difficult times. It is a critical position for Formula 1.

"If we do not race in Formula 1 next year it changes many things. It won't be the same. We know we'll race, but it will be different."

Despite the controversy, FIA president Mosley expects the Formula 1 world championships to begin as usual next March, with the eight FOTA teams involved.

He said: "Always with these things, in the end there is a compromise, because they can’t afford not to run in the Formula 1 world championship and we would be reluctant to have that without them.

"I don’t take this as seriously as some people do, because it’s all posturing and posing.

"It will all stop some time before March 2010 with the first race in Australia. It will all settle down."

On the track, Sebastian Vettel was fastest in both of yesterday’s practice sessions as his Red Bull team tested the potential of their updated cars.

Teammate Mark Webber was second on each occasion, but damaged his car as he ran wide late on in the second session.

Championship leader Jenson Button was third fastest in the first session, yet struggled with his Brawn in the second.

McLaren's world champion Lewis Hamilton was amongst the top ten quickest times.