The prospect of a French Grand Prix taking place in the 2010 Formula One season was dealt a major blow on Wednesday when Euro Disney and the Lagardere Sports group withdrew their joint bid to host the race.

The pair had hoped to hold the race at the Val d`Europe circuit, just to the east of Paris, but saw their plan scuppered when essential financial backing from other parties could not be secured.

`Despite the quality of the dossier put together by the two private partners and the support of (Formula One supremo) Bernie Ecclestone, it proved impossible to reach an agreement with the other parties, which was an essential condition in the development of the project,` read a statement released by Lagardere Sports.

`As a result, Lagardere Sports, in accordance with Euro Disney, has decided not to pursue the project to organise the 2010 Formula One French Grand Prix in the Val d`Europe region.`

The terms of the project would have seen Lagardere provide over 60 million euros in funds, with Euro Disney providing the land for the circuit.

The project was one of six being considered by the French motorsport federation (FFSA) as a replacement for the Magny-Cours circuit, with its proximity to Paris and readily available hotel accommodation seen as a major improvement on the facilities offered at Magny-Cours.

The FFSA was forced to withdraw its backing of the Magny-Cours race due to a lack of funds.

The Val d`Europe project, spearheaded by former world champion Alain Prost, was also the only one which would have enabled France to host a grand prix in 2010, meaning the country is now unlikely to host a race before 2011.

Around 250 residents of Val d`Europe held a protest against the project at the weekend, citing noise pollution and the detrimental impact on their quality of life that the race would cause.