A report in the Japanese English language newspaper “Mainichi Daily” claims that Toyota are about to announce their withdrawal from Formula One effective immediately.

The company is due to annouce it’s six monthly financial report this Thursday where it is expected to reveal a significant operating loss.

Sales have dropped by just over 30 percent in the April to September period compared with the previous year, with exports falling 45.4 percent.

The company had already announced it’s decision to withdraw from hosting the Japanese Grand Prix at its’ Fuji circuit and follows the news that Japanese tyre giant Bridgestone will pull out from F1 at the end of 2010.

Honda withdrew from the sport in 2009 leaving the popular Takuma Sato without a drive. Despite the presence of Kazuki Nakajima at Williams and the recent heroics of Kamui Kobayashi at Toyota, local interest in F1 has waned in recent years.

Should the rumours be correct, only Mercedes Benz and Renault will remain as mainstream auto manufacturers in F1.