It will also put British driver Jenson Button out of a job after nine years in F1 unless there is a late reprieve.

Honda Motorsport Corporation said it was pulling out of Formula One because of the global financial crisis.

Takeo Fukui, the chief executive of Honda Motors, announced at a news conference in Tokyo that the company would be willing to sell the team.

However, if a buyer cannot be found they will withdraw from the 2009 competition, ending the Japanese car giant's nine-year involvement in the sport.

Mr Fukui said: "We, Honda Motor Co Ltd, have come to the conclusion that we will withdraw from all Formula One activities, making 2008 the last season of participation.

"This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry, brought on by the sub-prime problem in the United States, the deepening credit crisis and the sudden contraction of the world economies.

"Honda must protect its core business activities and secure the long term as widespread uncertainties in the economies around the globe continue to mount. A recovery is expected to take some time."

It is understood the 600 members of staff at Brackley, near Silverstone, were told job losses would be likely, even if a buyer was found for the team. Honda Motor Corporation are dealing with faltering sales worldwide and the Formula One team is not the only casualty.

On Thursday, 490 temporary employees were told they would be laid off at the end of January, while last month 270 temporary employees were informed their contracts were not being renewed.