Gurney, who won four races during a Grand Prix career that lasted from 1959 to 1970, said that a deal to establish the team might be secured within a fortnight.

"We're awfully close to it," said Gurney, 71, at the US Grand Prix.

"We'll know by the middle of October. It would be American ownership and it would be more than one person.

"I'd like it to be a US F1 team with US drivers. The timing is perfect for it to happen.

"It's going to require certain dominoes to start falling pretty quickly but it would be a monumental situation.

"One of the keys right now is engines. We have a commitment - not a contract - from Ford Cosworth and we could have a signed contract in a couple of weeks' time."

Few details are being released, though two businessman, named as Bob Balachowski and Russ Olsen, are said to be working on a business plan.

"They've done a lot of the planning and legwork," said Gurney, who added that F1 commercial boss Bernie Ecclestone had promised his support.

"We will end up with major American sponsorship that wants to get global racing exposure and business."

Arrows link?

Gurney said the project began over two years ago though Hill, who won the 1961 world championship with Ferrari, had only recently become involved.

Unlike Hill, 75, Gurney has experience of running a racing team.

He had his own F1 outfit in the late 1960s, winning the 1967 Belgian Grand Prix in their car.

He has also run teams in the US-based Cart series and in sportscars.

It is suspected that Hill and Gurney might be trying to buy the Arrows team.

Arrows have not raced since the German GP in July and are in financial trouble.

However, Arrows have been absent from F1 for so long that it is unclear whether they still hold their rights to compete - and with them the entitlement to prize money.

F1 rules say that a team lose their place in the sport if they miss races through insolvency.

If an Arrows deal is a non-starter, Gurney and Hill would have to find a deposit of $48m to enter the F1 championship.