The Formula One Teams' Association announced on Thursday night that it is setting up a breakaway championship.

Following a four hour meeting at Renault's Enstone factory, the eight members of FOTA said it had grown frustrated with the FIA's stance against it and that it had no option but to create its own championship.

"The teams cannot continue to compromise on the fundamental values of the sport and have declined to alter their original conditional entries to the 2010 World Championship," said a statement.

"These teams therefore have no alternative other than to commence the preparation for a new Championship which reflects the values of its participants and partners. This series will have transparent governance, one set of regulations, encourage more entrants and listen to the wishes of the fans, including offering lower prices for spectators worldwide, partners and other important stakeholders.

"The major drivers, stars, brands, sponsors, promoters and companies historically associated with the highest level of motorsport will all feature in this new series."