Williams, Toyota confirm deal.

Despite having been expected at both the British and Canadian grands prix, Williams and Toyota have finally made the announcement regarding their future working relationship.

Perhaps fittingly, the confirmation comes in the run-up to Toyota Motorsports' 'home' event in Germany, revealing that the two parties have agreed a three-year engine supply deal, starting from the 2007 season. Under the terms of the agreement, Williams will use the same specification of engine as the 'works' Panasonic Toyota Racing operation, despite the obvious problems that could arise should the Grove team prove more competitive than its Cologne-based provider.

Indeed, both Williams and the Toyota team accept that there are 'significant benefit' to be realised from competing with each on track but working closely together off it.

"We are delighted to be supplying Williams with engines from 2007, and working alongside a team rich in history and Formula One spirit," Toyota's executive vice president Kazuo Okamoto said.

Although there were precious few alternatives open to Sir Frank Williams' team - remaining with Cosworth was perhaps the only viable option - Toyota Motorsport president John Howett insisted that his operation was 'pleased to have been selected' as the team's new engine supplier.

"We look forward to establishing a strong relationship with them," he said, "We look forward to both teams using each other as a comparative benchmark from which each can improve its own performance and to competing with each other at the front of the grid."

The deal casts doubt over Midland MF1's supply of Toyota engines, with the Silverstone team now being linked to the ex-Williams Cosworths. However, that possibility may disappear should Red Bull Racing find a way around its current contract with Ferrari and secure use of the British-built V8s for 2007.