According to Autosport.com negotiations between Prodrive and  McLaren-Mercedes for a partnership the 2008 F1 season have collapsed.

The Autosport website claims that sources have told them

"that McLaren F1 CEO Martin Whitmarsh notified his staff yesterday that the team are no longer pressing ahead with their plans for a partnership with Prodrive.

Neither McLaren nor Prodrive would comment on the matter."