Support Our Paras Racing, which made such a positive impact in its first season in the British Touring Car Championship last year, will not contest the 2016 series.
The decision, made by team principal Derek Palmer Snr, was taken after the targeted budget required to allow the team to move forward was not met.
"Naturally it's a huge disappointment to the team, and the injured guys from the Parachute Regiment who prepared the race car," Palmer Snr said.
"We appreciate these are tough times financially for companies across the country, but that doesn't make our disappointment any less.
"Naturally I would like to thank our principal sponsor of last year, TENA Men, for all their support. "We will now focus on returning to motorsport in a different series."of Man