Honda have decided to cancel the deal in place to supply Sauber with their engines from the 2018 season and beyond, according to various reports.
Auto Bild were the first to claim that the Japanese engine manufacturer have opted not to establish a new partnership with the Swiss team following Monisha Kaltenborn's departure as team principal.
Reports also claim that the deal, initially announced in April, has not been fully completed which has allowed Honda to sever all ties at this very early stage of the process.
A Honda spokesperson, in the response to the claims, said: "This is purely media speculation, and we do not comment on speculation. Honda's relationship with Sauber has not changed."
However, it is thought that a disagreement over the Honda deal played a big part in Kaltenborn's sudden exit.
In the midst of the rumours, Sauber have appointed former Renault boss Frederic Vasseur as Kaltenborn's replacement.