German Automotive giant, Volkswagen is closing in on a deal to buy the Red Bull F1 team to enter as a full works entry with Volkswagen power units in 2018 F1 season, reported by BBC Sport.
BBC F1 pundit Eddie Jordan says that the Red Bull team will likely use Ferrari engines in the interim until Volkswagen can develop its own power unit.
The agreement would see Volkswagen buy the team and build its own engine, while Red Bull continues as a major sponsor.
Also the Volkswagen brands, Audi is still considered the one most likely to be on a F1 entry.
Four-time world champions, Red Bull Racing will split with existing engine provide Renault after this season, after their miserable performance in 2015. Ending their deal a season early.
According to BBC Sport, Volkswagen board chairman Martin Winterkorn has already agreed with team boss Dietrich Mateschitz and Red Bull motorsport adviser Helmut Marko to purchase the team. Former Volkswagen Group chairman Ferdinand Piech was against the idea of going into Formula One, however, he resigned in April.
Team principal Christian Horner has publicly denied that anything is going on between the two brands, however, in Formula One, denial is the number one sign of guilt.