VW linked to Red Bull buy-out

German car manufacturer Volkswagen is set to take over Formula 1 team Red Bull, according to a BBC report.

The Milton Keynes-based outfit are currently on the lookout for a new engine supplier following their fallout with current partner Renault, but it appears changes at the team may go beyond a new engine partner.

According to BBC pundit and former F1 team owner Eddie Jordan, VW are close to agreeing terms on a deal that will see them buy the four-time World Championship-winning team.

"Red Bull and VW have been in on-and-off talks for more than a year and I understand that the fundamentals of a deal for the sale of the team have been agreed," Jordan told the BBC.

"An arrangement whereby VW would take it over, becoming the fourth major manufacturer in F1, and Red Bull would continue to enjoy the high profile that comes from a major sponsorship suits both parties."

The 67-year-old added that VW would only begin supplying the team with engines in 2018, with Ferrari set to power Red Bull in the interim.

Red Bull team principal Christian Horner has previously poured cold water on suggestions of a link-up with VW, saying in June that "there has been no dialogue with VW or Audi."

However, the two parties do have a history, as they currently enjoy a partnership in the World Rally Championship.

The report comes after Red Bull motorsport advisor Helmut Marko on Friday reiterated that the team would leave the sport if they did not have a competitive engine. "The decision is done. If we don't have a competitive engine we will leave Formula 1," he told Sky Sports.