The mysterious Cypher Group has announced that it has withdrawn its proposed entry in the 2011 world championship.

In a brief statement, issued days after Bernie Ecclestone suggested that two of the current teams might not be on the grid next season, the American outfit said:

"The Cypher Group has officially withdrawn its candidature to become the 13th team in the 2011 FIA Formula One World Championship.

"We remain completely committed to developing a credible and viable Formula One team and were able to raise a considerable amount of sponsorship and interest in recent months. However after much deliberation we have decided that the budget we have is not sufficient to allow us to pursue the project in a manner befitting the series. It was not an easy decision, but one made out of respect for the FIA Formula One World Championship and our loyal supporters.'

The Cypher Group is reviewing projects and opportunities that will allow it to achieve the ultimate goal of entering Formula One in the near future.

We would like to thank our fans for all their support and understanding."

The American outfit, which had been linked with Jonathan Summerton, was one of three hopefuls for next season, the others being Joan Villadelprat's Epsilon Euskadi and Jacques Villeneuve's proposed partnership with Durango.