Formula One has been thrown into chaos after the Formula One Teams Association (Fota) carried out its threat to set up a rival championship in 2010.

Eight of F1's major teams have been frustrated by deadlocked talks with world motorsport boss Max Mosley over his controversial budget cap proposals.

"The teams have declined to alter their original conditional entries to the 2010 F1 Championship," said the teams.

"We've no alternative than to commence preparation for a new championship."

... Fota refused to agree to his conditions, prompting championship leader Brawn GP, Ferrari, McLaren, Renault, Toyota, BMW Sauber, Red Bull Racing and Toro Rosso to take their drastic action.

They announced their decision following a four-hour meeting on Thursday night ahead of this weekend's British Grand Prix at Silverstone.