TOKYO — Honda has warned that disbanding its Formula One team remains a possibility as negotiations continue with potential buyers.

The Japanese manufacturer announced its withdrawal from F1 in December amid the global economic slowdown and has since fielded interest from potential buyers of the team based in Brackley, England, without any firm announcements.

British tycoon Richard Branson's Virgin Group is reportedly interested in the team.

"We would welcome them with open arms," F1 boss Bernie Ecclestone was quoted as saying by Britain's Daily Mirror. "He's exactly the type of person we would want in the sport. Sir Richard Branson is a wonderful guy. I met him at Monza last year and we got on very well."

Honda spokesman Hiroyuki Murase said "we are pursuing several potential buyers."

"But the team may still have to be disbanded if the negotiations fail," Murase said.

Honda, which did well as an engine supplier in the sport in the 1980s, could not continue that success when it became a stand-alone team after buying out BAR Racing in 2005.

Japanese team Super Aguri, which was supported by Honda, also pulled out of F1 in the 2008 season.

Jenson Button of England and rookie Bruno Senna, nephew of three-time former champion Ayrton Senna, were considered the likely drivers should a buy-out occur in time to have the team ready for the 2009 opener in Australia on March 29.

The team would also need to find an engine supplier, with Mercedes the most likely candidate.