Formula One driver Eddie Irvine looks set to retire after talks with the Jordan Grand Prix [ Images ] team broke down, a British newspaper reported on Thursday.

'It's a sad day. I have decided not to drive in Formula One this year -- or at least the moment,' Irvine told the Sun newspaper from his home in Miami [ Images ].

Championship runner-up with Ferrari [ Images ] in 1999, Irvine was released by Jaguar at the end of his contract in October but had hoped to secure a drive with Jordan this year.

The 37 year old was looking for a return to the Irish team where he started his career in 1993.

'In July last year I made my mind up to drive for Jordan. I had very strong feelings about returning to the team but due to the economic downturn, Jordan are forced to look for a driver who brings extra funds to the team whilst I can only bring speed reliability and greater experience,' he said.

Irvine would have been a strong asset to the struggling team but despite offering to take a huge cut in the £6 million ($9.67 million) salary Jaguar paid him each year, an agreement could not be reached.

'It's a shame because I really would have enjoyed the rule changes, specifically single-lap qualifying,' he added.

Jordan are looking for a second driver to team up with Italian Giancarlo Fisichella [ Images ]. Now that Irvine has been ruled out, Brazilian pair Felipe Massa [ Images ] and Enrique Bernoldi are expected to vie for the vacant position.