ITV is poised to pick up the terrestrial broadcast rights to Formula 1 from next season after the BBC decided to pull out of covering the sport.

The BBC has three seasons remaining on its current deal, allowing it to air highlights of every race on the circuit as well as select races live. The corporation is under pressure to make significant cost savings, however, and is turning to its sports budget for a quick fix.

According to Broadcast, axing Formula 1 three years early will save around £60m a season, or £180m for the lifespan of the deal, although the BBC will have to pay an early termination fee to Bernie Ecclestone which could run into tens of millions of pounds.

Commenting on the news, Ecclestone told PA: "The bottom line is that they are cutting back on all types of sport and if we really, really, really had to, we'd say 'you have got a contract and you better get on with it.' They can't leave the contract early.

"The Beeb have always done a very, very good job. I have no problem at all with them. It is just they can't afford to continue with what they have done in the past."

ITV, meanwhile, lost Champions League football to BT Sport this season and views Formula 1 as an ideal replacement for attracting the male demographic.

Earlier this year the BBC decided to drop coverage of The Open one year ahead of schedule as part of the drive to save money.