The US company bought Jaguar from Jackie Stewart's team in 2000 but subsequent lack of track success had led to speculation that Ford wanted to sell it on.

Ford's senior management reaffirmed its �25m-a-year commitment to the Milton Keynes-based team on Friday after a three-month review.

"With our works team, Jaguar Racing, we are in Formula One to stay," said Ford Motor Company chief operating officer Sir Nick Scheele in a statement.

"Formula One is undoubtedly the world's toughest proving ground, one that requires a sustained commitment in order to achieve success.

"Jaguar's presence in Formula One is not driven by short-term marketing objectives."

Technical problems

The Ford-owned Jaguar won just four points in its first season and nine last year when boss Bobby Rahal left to be replaced by three-time former world champion Niki Lauda.

Jaguar have struggled for much of this season after a serious design flaw was discovered in the R3 car.

But Eddie Irvine's third place in Italy two weeks ago showed that better times may be ahead.

Ford also confirmed that its famous blue oval badge will return to F1 via its engine arm, Cosworth, which will supply customer engines to Jordan for the next three seasons in a �14m-a-year deal.