They have now committed to the team until the end of 2007, as well as announcing greater cooperation with BAR on how their cars are developed.

BAR boss David Richards was pleased to secure his team’s future, especially at a time when other engine manufacturers have expressed doubt over their long-term commitment to Formula One.

Richards said: “Clearly for us it is an important deal and gives us long-term stability. I’d like to thank Honda for their commitment to BAR.

“Over the last few years we have been working in closer and closer cooperation – we are forming far closer relationships with the Honda people.

“The initial period of the contract is for three years but the intention is for it to go on for some time.”

Shoichi Tanaka, the president of Honda’s motorsport division, has grand designs for BAR and expects the Brackley-based team to challenge for world titles.

He said: “We have clearly not yet achieved our ambition of winning races and ultimately the world championship. By forming a new multi-year engine supply and chassis development agreement Honda remains committed to the BAR team and, I assure you, the Formula One world championship.

“This three-year contract states as an objective to win the world championship.”

But Tanaka revealed Honda have stipulated a get-out clause which would come into effect should any new rules dumb down the sport.

Honda make no secret they are in Formula One to show their technical prowess and will pull out if rules are written which overly restrict technology.

Tanaka added: “When the objective our participation in Formula One is not achieved by regulations to remove the image of Formula One as the pinnacle, there is a break clause.”

But Tanaka said Honda have no designs on owning BAR outright.

He admitted no decision has yet been taken on whether they will buy a stake in the team but added: “We have always said that to own the team is not as important to us as the technical challenge.”