Petronas, title sponsor of the Sepang Racing Team in the MotoGP, Moto2 and Moto3 classes, will not renew its agreement for the 2022 season, it has been officially confirmed.

The decision spells the end of the Moto2 and Moto3 teams, with SRT cutting back to running only its multi race-winning Yamaha MotoGP project.

The Sepang statement confirmed that the racing team is 'expected to make an announcement regarding its continuation in MotoGP from 2022 onwards under a new independent entity', suggesting the team could separate from the Malaysian circuit.

SRT's future will be made clear at the Silverstone round later this month, when its new satellite Yamaha contract should also be confirmed.

“SIC wishes to thank Petronas for the unwavering support during the partnership and a remarkable journey together," said Sepang International Circuit (SIC) Chief Executive Officer Azhan Shafriman Hanif.

"We respect Petronas’ decision, and mutually agreed that this partnership has accomplished its purpose and objectives. We have enjoyed a meaningful partnership, with great achievements and memorable moments with the team. I believe this is not the end of our collaboration in motorsports as we continue our quest in nurturing Malaysia’s motorsports talents.”

“SIC is proud to have been involved in the formation and early development of the team that had surpassed expectations in its performance. We wish the team all the best in the next phase of its evolution under a new entity.”

Petronas first appeared as title sponsor of the Sepang Racing Team Moto2 and Moto3 machines in 2018, before agreeing to bankroll the new MotoGP project with Yamaha for 2019.

The team enjoyed speculator success during its first two seasons in the premier-class, winning six races and battling for the world championship with Fabio Quartararo and Franco Morbidelli, the Italian finishing title runner-up in 2020.

SRT's current contracts with Yamaha and Petronas expire at the end of this year and, while the team has already confirmed grid places for the next five seasons with Dorna, the Yamaha and Petronas extensions have been delayed well beyond their predicted March-April renewal date.

Complications over the future Yamaha supply due to competition from VR46 looked to be one factor, but VR46 - headed by Valentino Rossi, who joined Petronas Yamaha this season - then chose the alternative Ducati supply in June.

Petronas said it was withdrawing having 'achieved what we set out to do'.

“We entered into this partnership with SIC to showcase our R&D capabilities, and we are proud that Petronas Fluid Technology Solutions have been instrumental towards establishing the team's status as a championship contender," said Petronas’ Head of Strategic Communications, Datin Anita Azrina Abdul Aziz

"Together, we have created some standout moments in the sport, serving as an indication that we have achieved what we set out to do and we feel it is the right time for us to conclude the partnership.

"On behalf of Petronas, we would like to express our gratitude to SIC for their commitment towards ensuring the success of the partnership.”

But the outcome is that one of the biggest teams in the paddock, with a presence in all three grand prix classes (as well as MotoE), has been trimmed back to only the premier-class.

The Petronas departure also helps explain why the team is prepared to release Franco Morbidelli from his contract to join the factory Yamaha team in place of Maverick Vinales next year, when the team's bike specification is also likely to be affected.

SRT currently has one Factory-spec bike for Rossi and an older A-spec for Morbidelli, but there are now doubts over whether SRT can afford even one Factory bike in 2022, when the Malaysian squad is expected to field an all-new line-up of young riders to replace Morbidelli and the retiring Rossi.

All of the other main satellite teams from Ducati, Honda and KTM have two of the latest Factory-spec bikes from their manufacturer.

Debuting in Moto3 in 2015 after taking over the former Caterham team, SRT has surprisingly been unable to repeat its level of MotoGP success in the smaller classes, but has won two Moto3 races with John McPhee (Le Mans in 2019 and Misano 2020).

McPhee, like team-mate Darryn Binder and Moto2 riders Xavi Vierge and Jake Dixon now faces an uncertain future, although Binder has been linked with a leap straight to MotoGP next season on one of the Sepang M1 bikes.

Petronas has achieved three podiums so far this season, spread equalling between the three classes; Binder in Moto3, Vierge in Moto2 and Morbidelli (currently sidelined by injury) in MotoGP.