"Jordan Grand Prix has decided to withdraw its legal claim against Vodafone. We realise that for the good of the sport, it is in everyone's interest to draw a line under this episode and concentrate on the rest of this season and the years ahead," said chief executive Mr Eddie Jordan.

Jordan Grand Prix Limited had earlier served a "notice of discontinuance" at the High Court in London two days after the lengthy trial had ended and just a few hours before Mr Justice Langley was due to hand down his judgment.

Jordan, who lost their title sponsor DHL/Deutsche Post before the start of the current Formula One season, also offered to pay Vodafone's legal costs at the highest indemnity rate.

But Vodafone's communications adviser Ms Sue Stapely told Reuters the mobile phone company had not accepted the notice.

Vodafone, which is one of Ferrari's main backers and also sponsor English soccer champions Manchester United and the England cricket team, want the judgment made public.

The judge rejected Jordan's application for the judgment to remain confidential.

However, the team has until 4pm on Monday to find another judge to allow them the opportunity to appeal Friday's decision.

If Jordan were granted their "discontinuance" the judgment would not be made public, but if they are unsuccessful it will be published either late on Monday or on Tuesday.

Behind the scenes talks between the lawyers are set to continue over the weekend as a prelude to a possible court of appeal hearing on Monday.

Vodafone has always denied Jordan's claims and said that it did not enter into a binding three-year agreement with Jordan as a result of a telephone conversation between its global branding director Mr David Haines and the racing team's boss Eddie Jordan.

Jordan had argued that Mr Haines told Mr Jordan "you've got the deal" and that, based on previous negotiations between the parties, this statement constituted a binding agreement.

Vodafone claimed that, while it had conducted discussions with Jordan and four other Formula One constructors in 2001, no agreement was reached with Jordan and no binding contract existed.

It said that as of March 22nd, 2001 when the conversation between Haines and Jordan is alleged to have taken place, Jordan was aware that many essential terms of any such agreement remained unresolved and that Vodafone had yet to discuss any Formula One sponsorship proposals with its governing bodies.

Vodafone claimed that, in a letter written after that date, Mr Jordan recognised that any sponsorship agreement would have to be in writing, and that other correspondence showed that the race team were aware that no agreement had been reached.

It said it was unheard of in Formula One circles for such an important deal to be concluded verbally, and that Jordan was aware that no sponsorship agreement of this value would be entered into in such a way.

Vodafone also argued that Mr Haines, who was travelling in the back of a car in Germany at the time, had neither actual nor ostensible authority to conclude a deal of this magnitude, and at no time held himself out to Jordan as having that authority.- (Reuters)