Dubai are in talks to buy a Formula One team, according to a Reuters report.

A statement issued on behalf of Sheikh Ahmed bin Saeed al-Maktoum states that there are negotiations taking place to purchase a team that would be run from the Middle East.

"The Emirate of Dubai is pleased to announce that following extensive planning and development, Grand Prix Investments (GPI) is in negotiations to acquire, operate and manage a Formula One team, to be headquartered in Dubai," the statement is reported to say.

The Sheikh is also quoted as saying that he fully supports the planned purchase of an F1 team that would be known as the official Dubai team.

Although no teams were named in the statement, a spokesman said there were three possible candidates.

Speculation is still ongoing about the future of Jordan although team boss Eddie Jordan refused to comment on the speculation.

"It is clearly not unusual for Jordan to be linked to all sorts of speculation and such like," he told Reuters. "I'm sure the royal family are speaking to a number of different teams and we really have no comment to make at this point."

However any deal for Jordan would have to involve Eddie Jordan remaining with the team in some capacity.

Other teams that could be targeted include Jaguar, Minardi and possibly BAR whose owner British American Tobacco may decide to sell when a tobacco advertising ban comes into place.

A spokesman for Belgravia Group, who are advising Maktoum's GPI, told Reuters that a number of teams had been assessed and approached with a deal hoped for by the end of the season.

The team would then be rebranded and relaunched with a new image in time for the 2005 season although the team would keep its base wherever in Europe with the headquarters based in Dubai.

Were a deal to go through, it would be a much cheaper option than setting up a new team from scratch, which would include a $50 million bond payable as an entry fee.