Mark Webber is heading to the world champion Renault team if pit-lane talk is correct.
Australia's Webber, 28, had been in talks with Williams team boss Frank Williams about a new two-year deal, but the Englishman baulked at the asking price.
The Australian understands it would have cost Williams $12million had it taken up the option on Webber.
The Williams team wasted little time in promoting test driver Alex Wurz to race alongside Nico Rosberg next year.
The emergence of Webber as a free agent has added spice to an intriguing driver market in the lead-up to Sunday's Hungarian Grand Prix in Budapest.
Renault, McLaren and possibly Ferrari, if Michael Schumacher retires, will be chasing drivers to fill seats next season.
Follow up:
Though Webber is managed by Renault team principal Flavio Briatore, the French-powered team has Kimi Raikkonen as its number one target. But everything hinges on where McLaren's Raikkonen goes. It is believed Ferrari has an option on Raikkonen's services and has set a deadline of next Tuesday.
If Raikkonen does announce his decision next week, it leaves the door open for either Renault or McLaren to make a swoop for Webber.
Whatever the situation, McLaren is already short one driver next year.
Colombian Juan Pablo Montoya will quit Formula 1 at the end of the season to race Nascar in the United States.
One McLaren spot will be filled by world champion Fernando Alonso, who is moving from Renault, leaving Italian Giancarlo Fisichella to drive for Renault again next year.
Webber has endured two frustrating seasons at the once-powerful Williams team. He had a solitary podium finish at Monaco last year but this season Webber has finished only four times in 12 rounds, his car failing on several occasions when he was in sight of a podium finish.
Williams is in eighth place in the constructors' championship this season and, despite his ill-fortune, Webber has managed to out-perform team-mate Rosberg.
Not even the fact Williams' cars will be powered by Toyota engines next season tempted Webber to stay.
At the time Williams announced the engine switch from Cosworth, Webber said he was not "massively excited".
Webber's best finish was two sixth places - in the opening grand prix of the season at Bahrain in March and at San Marino six weeks later. He was in a position to earn a podium finish after qualifying on the second row of the grid at the German GP last Sunday only to retire on lap 59 of 67 at Hockenheim with a water leak.
Source: ABC News(AUS)
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