Toyota would follow Honda as the second major Japanese automaker to withdraw from the sport. Honda pulled out in December last year, citing a slowdown in the global economy. Brawn GP, which took over the old Honda team, won the 2009 F1 championship.

Toyota, the only Japanese automaker participating in F1 this year, is seeking to cut costs as it expects to post an operating loss for the six months ended Sept. 30. The company is due to report earnings Thursday.

Japanese news agency, Kyodo, later cited unnamed sources close to the situation as saying Toyota Motor Corp. would withdraw from F1.

A Toyota spokeswoman said she was checking on reports in the Japanese media.

On Monday, Japanese tire manufacturer Bridgestone announced it would not renew its exclusive deal to supply tires for F1 when its contract expires in 2010.

That announcement came one day after the 2009 F1 season concluded with the Abu Dhabi GP.

In July, Toyota-owned Fuji International Speedway announced it would not host the Japanese F1 Grand Prix from 2010 and beyond amid the faltering global economy.