Villeneuve won the world title with Williams in 1997

Villeneuve, the Formula One champion in 1997, has been at the Paul Ricard circuit this week, and reports said that he was there to test for Williams.

The team said they hoped to have their driver line-up settled by August but denied Villeneuve was about to sign up.

"Certainly Jacques is not at Paul Ricard at our invitation," a Williams spokesman said.

"And to deny circulating rumours, he is not being seat fitted at the track for us this week, or indeed testing for us in France.

"In respect of our driver selections for 2005 and beyond, the team's immediate priority is to improve the performance of the FW26 as this will be the biggest single incentive to securing a competitive driver line-up for next season and beyond.

"As regards specific candidates, we are actively considering a wide range of potential candidates as would be reasonably expected, and to this end, we have had discussions with many drivers whose names have been the subject of recent press speculation.

"It is anticipated that the team may be in a position to confirm driver appointments by August."

Villeneuve has been out of Formula One since leaving BAR at the end of last season.

Juan Pablo Montoya is set to leave Williams for McLaren at the end of the season, while Ralf Schumacher could be on his way out too.