Interwetten Honda has confirmed that this Sunday's Valencia season finale will be the team's last race in MotoGP.
Interwetten moved up to the premier-class this season to run reigning 250cc world champion Hiroshi Aoyama, but is unable to continue for a second year.
"Aoyama will announce the team he will be signing the contract with for 2011 in Valencia and Daniel M. Epp, the [Interwetten] team manager and owner, will concentrate on his work with Tom Lüthi in the Moto2 class in 2011 and on the preparation of new projects and a return to the MotoGP class in 2012," said a team statement.
Aoyama missed six races this season after fracturing his back at Silverstone. His best finish to date is seventh at Sepang in Malaysia.
"It is a pity that the team cannot continue," said Aoyama. "I had a really good time with them and I want to thank the team for all they did for me.”
Aoyama is expected to join Gresini Honda, alongside Marco Simoncelli, for 2011.
There should still be six Hondas on the grid next year, with the factory team likely to expand to three bikes to accommodate new arrival Casey Stoner.