Jacques Villeneuve will drive for Sauber this year

Last week, five teams including Williams, BAR, Renault, Toyota and Minardi put their signatures on a memorandum of understanding.

It leaves Jordan and Red Bull still to decide on whether they will join up with the other teams.

Ferrari have signed to extend their commmitment to the current F1 championship by five years until 2012.

Sauber have used Ferrari engines since 1997 and their decision is likely to signal a break with the company, owned by Fiat.

However, the manufacturers have offered affordable engines from 2006 for the independent teams that sign up to their vision of the future.

BMW have already said they have been in talks with Sauber.