BTCC driver Matt Neal has lost his drive with the Peugeot Sport UK team after an important sponsorship deal fell through at the last minute.

Peugeot Sport UK was running three drivers in the BTCC this year including Neal's teammates Steve Soper and Dan Eaves. The third entry though was reliant on sponsorship and without it Peugeot cannot enter the extra team.

Mick Linford, Peugeot motorsport manager told the BBC: "I am extremely disappointed for the team and of course for Matt's sake. It was a joint approach that failed unexpectedly at the last moment."

Linford added: "I would hope the third car will rejoin the BTCC in the not too distant future, but until additional funding is sourced, we will remain a two-car team."

Neal who finished fifth at Brands Hatch (the opening round of the BTCC) said: "I needed a commitment for the year, but when the sponsorship talks broke down, Peugeot could only guarantee part of the championship. That was unacceptable. I am very disappointed but I do understand the reality of the situation and wish the team well."

Neal's future now looks uncertain although he is set to take part in a one-off European Touring Car Championship event on Tuesday next week at Magny-Cours in France. Beyond that the situation is presently unknown.