Christian Horner has played down speculation linking Red Bull to a potential buyout by the VW Group, but didn't entirely deny the talk of a collaboration from 2018.

Rumours surfaced over the Singapore Grand Prix weekend that the VW Group is closing in on a deal with Red Bull Racing to complete a takeover that would see the German manufacturer enter F1 with its own power unit from 2018.

Through the deal, VW - or one of its brands, most likely Audi - would enter F1 as a constructor, with Red Bull staying involved as a primary sponsor as it does in the World Rally Championship.

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Whilst reports of VW entering F1 are nothing new and previous links to Red Bull have been flatly denied, though Horner again says the claims are 'speculation', he doesn't dismiss them entirely.

"I think it is great that VW have been showing interest in Formula 1, but it is all pure speculation at the moment," he said. "Even if they were to decide to commit to come into Formula 1, you are looking at a minimum, within these framework of regulations, of two to three years away at least of being able to produce a competitive engine."

The talk of Red Bull entering into a partnership with VW would align with the news that the team is likely to secure a Ferrari customer engine contract for next two or three years, potentially giving VW time to develop a power unit.

"Our situation is becoming clearer," he continued. "We have had some good discussions with Renault during the past week and obviously the conclusions of those discussions will be fairly imminent. The implications that has for the future, however, are far from clear at the moment."