Mar.21 (GMM) F1 backmarkers Marussia and Caterham held talks over the winter about a possible merger.
The surprise news emerged as F1 chief executive Bernie Ecclestone attempted to explain why Marussia is the only team without a commercial deal for 2013.
"I have everything prepared here for them to sign," he told the Times.
The newspaper claimed Caterham and Marussia contemplated the merger to "guarantee survival", but the talks "foundered and the two teams are now in a dogfight for tens of millions of pounds in prize money".
Marussia chief executive Graeme Lowdon confirmed the merger talks.
"I wasn't involved in them (the talks) and as I understand it, the conclusion was unacceptable to our shareholders. So nothing happened," he told British broadcaster Sky.