Toyota said in a statement on Monday that the 40-year-old would leave the Cologne-based team at the end of the season after two years as a racer and two more as a test driver.

"I know that it is time for me to move on and fulfil my wish to race again," said Panis.

"I am looking forward to new racing challenges outside Formula One but I will keep a close eye on Toyota's performances and hope they achieve all the success they deserve."

Panis had a 10-year racing career in Formula One, winning the 1996 Monaco Grand Prix with Ligier and finishing second on three occasions.

His last race was with Toyota in Japan in 2004.

Toyota said they were close to an agreement with French driver Franck Montagny, who raced for Honda-powered Super Aguri this year, to join as their official reserve and test driver next season.

Brazilian Ricardo Zonta, Toyota's other regular test driver, is joining Renault and is likely to be replaced by a youngster from inside the team's young driver programme.