The Fuji International Speedway, a subsidiary of car-maker Toyota, will relinquish the hosting rights for the Japanese Grand Prix from 2010.

The circuit said that the global economic downturn has made it “extremely difficult” to continue to host the event. The race is estimated to cost between 2 billion and 3 billion yen (£12-18 million), according to Reuters.

Fuji was scheduled to host the Formula One race in 2010, alternating each year with the Honda-owned Suzuka Circuit.

Hiroaki Kato, president of the Fuji track, stated:

"After only having announced barely three years ago, in March 2006, that Fuji Speedway would hold the F1 Japanese Grand Prix, it is heart-wrenching that we were not able to avoid the decision to abandon our plans to hold the race from 2010," he said.

"To the people who attended the event at Fuji Speedway last year and the year before, to those who were looking forward to the event there in the future, and to all those locally and elsewhere who granted us their immense understanding and encouragement, I deeply apologize for a result not commensurate with your expectations.

"At the same time, I would like to express my heartfelt appreciation for your kind support.

"Fuji Speedway intends to devote itself with even greater intensity to promote motor sports. For this, we humbly seek your continued understanding.".

Toyota has been forced to put several projects on hold to save funds as it expects its operating loss to reach a record 850 billion yen in the business year to March 2010.

Fuji staged Japan's first Formula One race in 1976 but a crash which killed two spectators in 1977 saw the circuit removed from the Formula One calendar.