Hayden Paddon out of WRC for 2019 after Hyundai gets Sebastien Loeb

The 2016 Rally Argentina winner had set his sights on remaining with Hyundai, but Loeb's arrival has ended those hopes.

Hyundai management insisted dialogue was ongoing with Paddon, but Autosport's sources have indicated the programme proposed was too limited for him.

The 31-year-old was offered just a single WRC outing - most likely in Finland - next season.

"We couldn't find an agreement that worked for both of us," Paddon told Autosport.

"I always said Hyundai was my only realistic target for next season, there just aren't the seats anywhere else.

"After the signing of Sebastien Loeb we've been left high and dry - a seat [and] position which was planned we had after several months of discussions.

"The last few months have been mentally very difficult. There have been many discussions in the background, we were promised and told many things which haven't come to fruition.

"We were made aware of the Sebastien Loeb decision yesterday and after that we were offered just one rally, which in everyone's best interests - that's not an option for us."

"Naturally we are very disappointed, but at the same time understand that can be the reality of professional sport. We can be proud of what we achieved and hold our head high.

"We were always told it was impossible for a Kiwi to be in the WRC. Not only did we get there, we won a rally and have eight podiums - some nice success that we can reflect on and was not possible without the belief and help of so many people in NZ.

"Of course, I feel like we could have achieved more but you can't spend life reflecting on the 'what ifs'."

Paddon has driven for Hyundai for the last five years and while he takes a step back from the WRC next season, he will remain in the sport.

"This is certainly not the end," he said. "Rallying is in my blood and it's just a matter to regroup and plan the next steps.

"We have some nice ideas [and] projects that we will try and put in place to take on the world with our own Kiwi team.

"I'm still competitive, I'm still motivated, I still want to drive and I still want to win."

Driving a Hyundai i20 AP4 built by his own Hyundai NZ team, Paddon dominated this year's New Zealand Rally Championship - winning all five rallies on the calendar.

He is looking to expand his operation and his role as an ambassador for Hyundai New Zealand, a key market for the Korean manufacturer.

Paddon's announcement of his WRC exit indicates that, despite speculation to the contrary, Andreas Mikkelsen will contest the full 2019 season alongside Thierry Neuville.

Loeb and Dani Sordo will share the third factory i20 Coupe WRC, with the nine-time champion entering six rounds and Sordo filling the seat for the other eight.