The Euskaltel team will fold at the end of the season. The negotiations between the team and Formula 1 driver Fernando Alonso about a possible acquisition of the team license have come to nothing and the future of the riders are now back up in the air.

One month ago, the Euskaltel team appeared to be saved when it was confirmed that Euskaltel and Fernando Alonso had reached a principal agreement that would allow the Formula 1 driver to take over the team's license. Today Euskaltel announced that the parties haven't been able to reach a final agreement and that the negotiations have been brought to an end.

The breakdown was already rumoured in the Spanish media this morning but has now been officially confirmed. While it now appears to be a certainty that the team will fold at the end of the season, the futures of the 14 riders who have a contract for next season and were expected to be part of the new project, are once again up in the air.

In the media reports, Euskaltel was rumoured to be partly responsible for the sad development, having added several additional requirements to the principal agreement. However, the Basque squad refuses those claims in a press release issued today.

"The Euskaltel representatives cannot hide their disappointment at the outcome of the negotiation process," the release states. "It is a sad day for Euskaltel and the team, after the expectations generated by the first agreement reached in late August and public statements made at the time by Fernando Alonso and his representatives."

"For Euskaltel it is sad news that a final agreement hasn't been reached after all the hope created by the tentative agreement. Euskaltel has devoted all its efforts to such an agreement, doing our part without any financial restrictions as opposed to what has been stated in the media."

The team adds their disappointment over the several rumours that have circulated in the press.

"Euskaltel deeply regrets the occurrence of different information and leaks of false information that have not contribute to a solution. We would like to explain the details of the negotiations, but we cannot because we respect the confidentiality of the negotiations."

With today's decision, a long era which started in 1994 with the establishment of the Euskadi foundation has definitively come to an end.