Citroen's Sebastien Loeb won this year's drivers' championship

The French manufacturers have blamed "tougher conditions in the car market" for the decision to withdraw.

Citroen and Peugeot have dominated rallying in the last five years, winning five manufacturers' titles and three drivers' titles between them.

Frenchman Sebastien Loeb was crowned drivers' champion in 2004 after just missing out on the title in 2003.

"Given the current economic climate in the industry, PSA Peugeot Citroen has decided not to commit to the world rally championship beyond 2005," said a statement on Thursday.

"In 2005 we will be studying alternative ways in which to keep an interest in the world of sport with a reduced budget.

"As soon as we know, Citroen Sport and Peugeot Sport will announce which disciplines we will be investing in beyond 2005."

On Tuesday, Ford, who have put their Jaguar Formula One motor racing team up for sale, said they would be staying in rallying for the next four years.