Porsche and Audi are a step closer to entering Formula 1 in 2026 following a high-level meeting inside parent company the VW Group.
A spokesperson told German publication Auto Motor und Sport: "The board of management and supervisory board of Volkswagen AG, Porsche AG and Audi AG have confirmed the plans of the two group brands for a possible entry into Formula 1.
"The Audi and Porsche brands will provide details at a later date."
It is understood Porsche will join forces with Red Bull, while it has been suggested Audi could now partner with Sauber rather than McLaren as had been anticipated.
Porsche has been heavily linked with Red Bull since the team parted company with Honda at the end of last year, while its soon-to-be-completed powertrains facility is an additional lure.
Audi had been linked with a purchase of McLaren, with recent reports suggesting a price of around €500million [£422m] for the Woking-based organisation.
It is believed the two parties have been unable to reach an agreement, leaving Audi to now turn its attention to Sauber, which oversees the Alfa Romeo F1 team.
The only hurdle remaining is the finalisation of the 2026 regulations, which are due to be signed off by the FIA in June, although it has been suggested there may be delays.
The power-unit spec is known as F1 will continue with a 1.6-litre turbo-hybrid engine, albeit without the MGU-H.
A key area of Audi's entry, in particular, is sustainability and whether F1 can follow through on its fuel targets as the sport is hoping to switch to 100 per cent sustainable ‘drop-in fuels’ from 2026.