It's understood that the 'breakaway' championship, the Grand Prix World Championship (GPWC), could begin signing contracts with sponsors, circuits and even TV broadcasters as early as next month, as it slowly applies the pressure to Bernie Ecclestone and Formula One.

According to The Independent, a source claims: "We are close to signing. This will set in motion the plans to set up the alternative series by 2008 at the latest."

In October, the GPWC revealed that it had appointed International Sports and Entertainment AG (iSe), a leader in global sports marketing and management, to start building the operational and commercial structure for the series.

With Ford's withdrawal from Formula One, the GPWC now comprises Renault, DaimlerChrysler, Ferrari and Renault, though Honda is tipped to be on the verge of joining.

The revelation that GPWC is close to signing its first contracts, comes just days after Bernie Ecclestone lost his High Court case with the three banks that own 75% of F1.

Although the banks are keen to talk with the GPWC, the manufacturers insist that the breakaway championship is no idle threat and that it will go ahead, no matter what.

Should the manufacturers desert F1, this would seriously impact on the financial value of F1, something the banks are well aware of.