World Champions Red Bull and rivals Ferrari will withdraw from the Formula One Teams Association (FOTA) after failure to reach agreement over cost cutting measures.

Ferrari said, on Friday, the organization's "drive has run its course."

The decision will leave FOTA, created to represent a united front in negotiations with commercial supremo Bernie Ecclestone and the governing FIA, with just nine of the 12 teams.

Strugglers Hispania (HRT) pulled out last January, saying it no longer made sense for them to be members, although FOTA said the Spanish-based team had failed to pay their membership dues.

"Red Bull Racing can confirm it has served notice to withdraw from FOTA," the team of double world champion Sebastian Vettel said, just five days after the end of the season in Brazil.

"The team will remain committed to finding a solution regarding cost saving in Formula One."

Ferrari, whose president Luca di Montezemolo was FOTA's first president, said they had also given notice.

"Ferrari has informed FOTA president Martin Whitmarsh that it is leaving the organization," the Italian team said on their website.

"It (the decision) was taken reluctantly after analysing the current situation and the stalemate when it came to debate on some issues that were at the core of why the association was formed," said Ferrari.

"FOTA's drive has run its course, despite the excellent work of... Whitmarsh in trying to reach agreement between the various positions for the common good."

Ferrari said they would work with the other teams to make the cost-cutting Resource Restriction Agreement (RRA) "more effective and efficient."