Few names stirs as much recognition, respect or emotion in so many fields of racing as Lola. For five decades, the company has built cars for innumerable race series, including Formula One during the 1960s, 70s and 80s. The return of Lola to F1 could spell a new era for both the sport and the carmaker.

Having signaled an interest in F1's budget-capped future last month, the British racing car company Lola has now committed to submitting a 2010 team entry by the May 29 deadline.

"The Lola Group is pleased to announce that it will be submitting an entry," part of a statement issued by the outfit, which last attempted a F1 foray in 1997, read.

Lola said the 2010 cap figure was set at 30m pounds sterling when it first began evaluating designing and racing a car next year.

The increase of the figure to 40m "led to a re-examination" of the project by Lola, "culminating in today's confirmation that it will proceed".

The FIA is expected to publish the first 2010 entry list in mid June.

The Lola announcement fills in some of the mystery to Bernie Ecclestone's announcement in late March that 3 new teams could be joining the F1 grid next year.

An American team formerly known as USF1 and now known as USGPE - U.S. Grand Prix Engineering - is another of the three, and Korean carmaker Hyundai is rumored to be the third.

At the same time, however, Ferrari - the single longest-standing team in F1 - is threatening to drop out in 2010. A lawsuit filed today in French courts proves how seriously Ferrari is taking the matter.

Mosley and the FOTA are meeting on the subject of the matter - the two-tiered technical regulations and low budget cap figure - and the FIA president was optimistic yet cautious about the outcome saying that though he had not agreed to compromise on his plans, he doubts Ferrari will actually quit the sport.