Long-time team owner Mark Larkham has sold his level one V8 Supercar licenses.

WPS Racing and Larkham Motor Sport, one of the founding teams in the championship, have merged to form a new V8 "super" team in 2006.

The move combines the resources, knowledge and vision of both Gold Coast-based teams and Larkham will be Managing Director of the new operation.

WPS Racing's owner Craig Gore will step away from the day-to-day operations of the team and will focus on building further strategic partnerships. He has already confirmed an exclusive engine-building alliance with Queensland's Craig Hasted.

LMS's former naming rights partner Orrcon, a leading steel, tube and pipe manufacturer, has also been retained as a major sponsor in the merged operation.

Gore and Larkham will both have equity in the joint venture, which is set to make further major announcements over the next few weeks.

"I guess you could say that I have sacked myself as the "captain" and I could not think of a better person than Mark Larkham to take the reigns of the merged operation," said Gore.

"We searched globally for someone to take over the racing operations and then through the merger we found him just three kilometers down the road."

Larkham said the new partnership would be the next exciting chapter in his long and successful motorsport career.

"At the end of the day, this merger will provide us with the opportunity that we are all looking for in this business -- the chance to be competitive," said Larkham.

"I think the LMS and WPS operations complement each other perfectly. I look forward to being Managing Director of the new team, working with a substantially increased budget and being involved with someone as dynamic and as passionate as Craig (Gore)."

The team will be based at the purpose-built WPS Racing workshop in Gaven on the Gold Coast.

The new-look team will take to the circuit for the first time in the opening round of the 2006 V8 Supercar Championship at the Clipsal 500 in Adelaide on March 23-26.