Oxford, England - The Williams Formula One team was Wednesday suspended from the teams' association after its decision to enter for the 2010 F1 championships.

Williams said in a statement it had been temporarily suspended from membership of FOTA, the Formula One Teams' Association.

It came two days after Williams lodged its entry for next season's F1 championship, breaking ranks with other teams in a row over a proposed budget cap for Formula One.

Friday is the deadline for teams to enter the 2010 championship.

Williams team principal Frank Williams said FOTA's decision "although regrettable, is understandable."

He added: "However, as a racing team and a company whose only business is Formula One, with obligations to our partners and our employees, submitting our entry to next year's championship was unquestionable.

"In addition, we are legally obliged under our contract with FOM (Formula One Management) and the FIA to participate in the world championships until the end of 2012."

Ferrari and other teams have threatened to quit F1 after motorsport federation FIA said it would introduce a budget cap of 45 million dollars for the 2010 season.

Teams which stick to the cap will have plenty of freedom in car construction while teams which spend more face restrictions.

Reports at the weekend had suggested that a compromise was possible as FIA president Max Mosley appeared ready to make concessions such as a gradual move towards the 45-million dollar level. (dpa)