But Yasuhiro Wada, general manager of Honda's motor sports division, told Reuters that no firm decision had been taken about reallocating resources.

"As a result (of pulling out of CART), we will be able to afford to have more development staff," he said.

Honda announced on Friday that it would stop supplying engines for the North American-based motor racing series at the end of next season.

Tom Elliot, president of Honda performance development, told a news conference at Laguna Seca Raceway that the American subsidiary could not produce an all-new engine in time for the start of the 2003 CART series.

Asked about Honda's Formula One plans, Wada said the company would continue to supply Jordan and British American Racing next season, but nothing was decided for 2003.

With Toyota joining Formula One next year Wada hopes the rivalry will boost motor racing, particularly in Japan with young Japanese driver Takuma Sato making his debut with Jordan in 2002.

The 24-year-old, who captured the British Formula Three title this season, has signed a two-year deal with Jordan.

"As a whole, we are looking forward to the next season. We will make every effort to beat (our rivals) next year," Wada added.