The Italian magazine Sport Auto & Moto is reporting that Euro 3000 team Draco is being linked with a proposed F1 venture by Dallara.

The report suggests that Draco owner Adriano Morini has been approached as the Italian manufacturer begins work on a project which could see it in F1 in time for the 2006 season. The story has gained momentum in recent weeks following an advert in British magazine Autosport. Furthermore a number of F1 teams report that Dallara has 'approached' its personnel

Dallara built F1 cars between 1988 and 1992, running Ferrari power-plants in its final season. The Italian manufacturer also worked with Honda when the late Harvey Postlethwaite ran the HRD project in 1999.

Former Jordan designer Gary Anderson has been linked with the project, as has Sergio Rinland. In addition to Draco, there is talk that British F3 boss Trevor Carlin has been approached with a view to running the project.

Max Mosley is keen to see new teams in F1, and in recent months there has been much talk of F3000 champions Arden Motorsport making the switch. However, with the current rules instability, the $48m 'bond', and the ever-increasing costs, F1 is more likely to lose existing teams than attract new ones.

Inevitably, it is suggested that a "Middle Eastern consortium" is funding the project.