(RacingWire) – Toyota is pulling the plug on it's Formula One program effective immediately.

Toyota's departure from the F1 grid has been rumored for quite some time despite the team's insistence that plans were on track for 2010.

The decision was made at Toyota's Board of Directors meeting Wednesday in Tokyo.

The announcement was confirmed in a news release.  "TMC (Toyota Motor Corporation), which had viewed its participation in F1 as contributing to the prosperity of automotive culture, remained dedicated to competing at the pinnacle of motor sports, even in the face of the abrupt economic changes that started last year. However, when considering TMC’s motor-sports activities next year and beyond from a comprehensive midterm viewpoint reflecting the current severe economic realities, TMC decided to withdraw from F1."

The news gives hope to the former BMW Sauber team which is hoping to re-enter Formula One in 2010 after securing funding to keep the team alive. BMW Sauber's funding plan wasn't in place prior to the signing of the Concorde Agreement. That kept the squad on the outside looking in as F1 awarded the final spots on the grid to new start-up teams, including US F1.