“In the course of the last few months, Dr Ing hc F Porsche AG and Red Bull GmbH have held talks on the possibility of Porsche’s entry into Formula 1,” the car manufacturer said.
“The two companies have now jointly come to the conclusion that these talks will no longer be continued.
“The premise was always that a partnership would be based on an equal footing, which would include not only an engine partnership but also the team. This could not be achieved.
“With the finalised rule changes, the racing series nevertheless remains an attractive environment for Porsche, which will continue to be monitored.”
Though the main sticking point is that Stuttgart does not currently have the infrastructure to produce its own power unit, one potential partner is Williams.
The Grove outfit is lead by Jost Capito, who used to be principal of VW’s WRC squad, and has also employed several members of the former rally team.
Michael Andretti, who is desperate to have his own F1 entry, could also provide a link-up, though how much control he would be prepared to cede remains to be seen.
After the recent rumours began to surface, F1 CEO Stefano Domenicali said there were a significant number of manufacturers ready to step in should Porsche withdraw its interest.