"Due to tougher conditions in the car market, new opportunities in motor sports will be reviewed in 2005, with a view to enabling the (PSA) Group to significantly cut its sports budgets," PSA Peugeot Citroen said in a statement.
"Peugeot and Citroen will remain strongly committed to the world rally championship in 2005.
"However PSA Peugeot Citroen has decided that the marques will no longer take part in the WRC beyond that date."
The two teams have won five manufacturers' titles and three drivers' titles in the last five years.
