The Silverstone paddock is buzzing, as talk of a possible buy-out of a current Formula One team by Dubai's Maktoum family builds.

The rumours first began several months ago, and in recent weeks they have been slowly building.

Now, is a prepared statement, Sheikh Ahmed bin Saeed al-Maktoum, has revealed that there is foundation to the story, though he refuses to name which team is being considered.

"The Emirate of Dubai is pleased to announce that following extensive planning and development, Grand Prix Investments (GPI) is in negotiations to acquire, operate and manage a Formula One team, to be headquartered in Dubai," reads the statement.

"I am delighted to reconfirm my support to GPI and the purchase of a Formula One team, which will then become known as the 'official' Dubai team.

"This is an exciting time for Dubai and the United Arab Emirates as the team will compete with the very best in motorsport and assist in promoting the country on a global basis."

The teams being linked with the buy-out, are Jordan, which is currently sponsored by another Arab state, Bahrain, BAR and Minardi. Though there is always the possibility that Ford might be prepared to sell Jaguar.

By purchasing an existing team, the new owners would not have to pay the current multi-million pound bond to the FIA.

A spokesperson for the Belgravia Group, which is advising GPI told Reuters: "There is no intention to pick up a team and move it lock, stock and barrel to Dubai. Europe is the base for Formula One and, while the team will be headquartered in Dubai, it is very much going to keep its European base. The factory, wherever it is, will remain where it is."

Meanwhile, Eddie Jordan is refusing to give anything away: "It is clearly not unusual for Jordan to be linked to all sorts of speculation and such like," he told Reuters. "I'm sure the royal family are speaking to a number of different teams and we really have no comment to make at this point."

"I am willing to look at anything to get Jordan back to the top and fighting for wins and a championship," he added. "But of course it would have Eddie Jordan involved in it because it's my life and my passion."

The F1 buy-out, if it happens, will not conflict with Sheik Maktoum H Al Maktoum's proposed A1 Grand Prix series, which is to get underway in September 2005.