Panoz has abandoned its return to the prototype ranks in favour of a new GT2 contender, reports this week's AUTOSPORT magazine.
The US marque was an overall race winner in the American Le Mans Series between 1999 and 2002, and had revealed earlier this year that it was working on a revolutionary front-engined LMP1 prototype for the 2010 season.
That project, codenamed Abruzzi, has now been ditched in favour of a replacement for its ageing Esperante GT2 racer.
Don Panoz, who runs the manufacturer with son Danny, said: "There are a lot of reasons why the LMP1 can't happen, but the idea hasn't gone away."
Danny Panoz elaborated on his father's comments.
"The plan was always for a road car, so we're coming at it from a different angle," he said. "We are looking to have a new GT2. We can't be ready for the Sebring 12 Hours, but we are definitely trying to have something up and running during next season."
The new car would be run by Tom Milner's Prototype Technology Group, which is the official Panoz team in the ALMS.