Rahal shown the door at Jaguar

Rahal was given the reins of the Jaguar team last December, but in under a year relations are thought to have broken down between the erstwhile CEO and Jaguar overlord Niki Lauda, who was brought in to chair Ford's Premier Performance Division, which includes Jaguar Racing, earlier this year.

The top heavy structure is believed to have caused confusion at the Milton Keynes-based team and following a protracted meeting in London on Thursday, between the management duo and Jaguar Cars chairman Reitzle, Rahal has been shown the door and will be replaced by Lauda.

Rahal has never outwardly criticised Lauda, despite rumoured disagreements over such matters as Arrows' Cosworth engine deal for next year and more recently Rahal's offer to sell number one driver Eddie Irvine to Jordan. According to the American, who is to return to his Champ Car team in the US, the split was entirely amicable.

"It has been a tremendous privilege to play a key role in the formative stages of the development of Jaguar Racing," said Rahal. "I have truly enjoyed the time I have spent with the many talented people at Jaguar Racing and I wish them all the best for the future.

"I would stress this is an entirely amicable parting and I look forward to continuing my other business relationships with Ford in the US."

Lauda was brought in as chairman of the PPD in February to oversee Cosworth, Pi Research and Jaguar Racing and also to 'smooth the way' for Rahal at a higher management level. However, the three time world champion has made quite an impact on the team and will be taking over Rahal's former duties with immediate effect.

"I would like to thank Bobby for the contribution he has made to Jaguar Racing," said Lauda. "Following this development my focus will now be 100 percent on the Jaguar F1 project."