The new BMW-Sauber team makes its debut in 2006

The deal, which BMW describes as a "long-term strategic technology partnership", starts in January.

Intel's sponsorship will renew the rivalry with Advanced Micro Devices, who sponsor Sauber's F1 rival Ferrari.

BMW, who have supplied engines to Williams since 2000, bought Sauber in June this year and will run its own team in 2006.

"Formula One demands the control and coordination of hundreds of parameters simultaneously and the precise execution of every step," said BMW motorsport director Mario Theissen.

"Cutting-edge technology is a crucial success factor, and BMW has accepted the challenge.

"We are delighted that a strong partner such as Intel has done likewise in collaboration with us."

The deal will see Intel products deployed throughout the BMW Group.

"Intel and BMW intend to collaborate heavily on the IT technology and marketing side as our brands are very dynamic and innovative," said Intel senior vice president Eric Kim.

"Intel will infuse the BMW Sauber F1 Team with its technology - technology that we believe will support the team's performance."