There's been plenty of rumors in recent months that Volkswagen Group is considering entries for both Audi and Porsche in Formula One.

It appears the green light has now been given as Reuters reported on Monday that VW Group CEO Herbert Diess announced that the decision has been made to allow both brands to enter F1.

The Reuters report was short on details but it alleged that Diess said Porsche's preparations were “more concrete” than that of Audi.

Should the report prove accurate, the VW Group brands will likely only enter F1 in 2026, when a simpler power unit is due to be introduced and the sport switches to sustainable fuels. VW Group executives have been present for many of the discussions on the future of F1's power unit.

Herbert Diess

Herbert Diess

And we're also unlikely to see the VW Group brands form their own teams. According to the rumor mill, Porsche is in talks with Red Bull Racing about becoming the team's power unit supplier (and likely for sister team AlphaTauri as well). Red Bull currently builds its own power unit based on the design of former supplier Honda. It will need a new supplier once the new power unit rules are introduced.

Things are murkier for Audi. There are rumors the brand with the four rings is looking to acquire McLaren Group, which controls the McLaren F1 team. Citing a source, Reuters reported in March that Audi made an offer of 500 million euros (approximately $556.3 million) for McLaren Group.

Porsche has a history in F1. It competed as a constructor in the 1950s and ‘60s and then briefly as a power unit supplier in the 1980s and early ‘90s. While Audi hasn't competed in F1, it does have a history of grand prix racing, having dominated on racetracks together with Mercedes-Benz during the 1930s, when it was the Auto Union.

Stay tuned.