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The team, who have raced for the past three years in British Superbikes, have been on the search for new backers for a move to WSBK for months as current sponsor Airwaves will only stay on if they continue in the domestic championship.

The reason is that Airwaves, owned by the Wrigleys chewing gum corporation, is only sold in the UK, rendering advertising in other countries pointless.

A hunt for new sponsors though appears to have turned up a blank, rendering the squad unable to move up.

Team manager Colin Wright told eurosport.yahoo.com recently: "Whatever decision we take, it will be based on finding sponsors. Airwaves want to continue, but only in BSB as they don't sell the brand outside the UK.

"As for other sponsors, we have to have backers on board who want to advertise throughout Europe and the World. That's the key.

And the team's future in the British championship looks over too, as series organisers will not allow Ducati's new 1098 to run with the modified pistons that the team are demanding, and retaining their current 999 machines is not an option.

GSE's announcement means that riders Leon Haslam and Gregorio Lavilla are likely to have to look elsewhere for employment next year.

British rider Haslam, 25, has already been handed a contract by HM Plant Honda [which he is yet to sign], but also has Suzuki interested in his services.

Spaniard Lavilla meanwhile, had already said that remaining in BSB with GSE was his preferred option, but now looks likely to return to Kawasaki's World Superbike team, for which he scored three podiums in 2000 and 2001.

Jamie O'Leary / Eurosport