Jaguar will pull out of Formula One at the end of the year.
Chairman and chief executive Joe Greenwell said financial reasons were behind the company's decision.
He said: "After a thorough review over many months Ford Motor Company has decided it can no longer make a compelling business case for any of its brands to compete in Formula One.
"Having reached this decision our focus has turned to securing the best future for our Formula One businesses and our employees in these businesses going forward.
"We are therefore putting our Formula One businesses up for sale.
Australia's Mark Webber and Austria's Christian Klien are this season's drivers for the team.
Jaguar are currently seventh in the constructors' championship with 10 points.
Parent company Ford said production of cars at Coventry was to end with the loss of more than 1,100 jobs.
Racing supremo Bernie Ecclestone described the withdrawal as no surprise.
"It wasn't really a shock to me - they couldn't afford to be running around at the back of the grid with the likes of Jordan," Ecclestone told the BBC's website.
PA