Toyota-owned Fuji Speedway on Tuesday confirmed reports that the circuit will no longer host the Japanese grand prix.

It had been widely rumoured that the venue located in the foothills of Mount Fuji, west of Tokyo, would relinquish the hosting rights due to Toyota's financial struggles.

After running races in 2007 and 2008, Fuji was set to return to the calendar in 2010 according to a new alternating agreement with Honda's popular Suzuka track.

"We decided it would be extremely difficult to continue holding the Japanese grand prix ... in view of sharply deteriorating business conditions and few signs of a rapid economic recovery," read a statement issued by Fuji Speedway.

Circuit president Hiroaki Kato said the decision was "heartbreaking" and apologised "deeply for being unable to live up to expectations".