Channel 4 will become the UK's terrestrial television broadcaster of Formula 1 from next season after the BBC "reluctantly" ended its contract with the sport three years early.

F1 is the latest sport to be dropped by the BBC, whose sports budget was recently cut by £35m.

BBC director of sport Barbara Slater said on the corporation's website that some "tough and unwanted choices have to be made".

"Any decision to have to stop broadcasting a particular sport or sporting event is hugely disappointing and taken reluctantly," said Slater.

"There are no easy solutions; all of the options available would be unpopular with audiences."

F1 chief Bernie Ecclestone was positive about the move and believes that Channel 4 will be able to bring a "new approach" from next year.

"I am sorry that the BBC could not comply with their contract but I am happy that we now have a broadcaster that can broadcast Formula 1 events without commercial intervals during the race," PA quotes Ecclestone as saying.

"I am confident that Channel 4 will achieve not only how the BBC carried out the broadcast in the past but also with a new approach as the world and Formula One have moved on."

ITV were initially linked with regaining the rights, but Channel 4 will broadcast 10 of next year's 21 races live, with extensive highlights of the other 11.

Englishman Lewis Hamilton is the defending champion after winning his third world title in 2015 with Mercedes.