Lola were a consistent presence in the F1 paddock from the 1960s
Lola has abandoned its plans to return to F1 after failing to secure a place on the initial 2010 entry list.
The constructor, which supplied cars for the likes of Graham Hill in the 1960s, last competed in F1 in 1997.
"Significant investment has been made in producing its 2010 contender," said a statement from the company.
"The International Motorsport Federation (FIA) had requested that the Lola F1 Team remain in a state of readiness for a possible future entry."
However, the team said they had now advised the FIA that they were no longer in the running.
Lola was on a list of possible new entrants to the 2010 championship.
The deadline for entries to next year's championship is Friday.
With many leading teams still not having confirmed their participation next year because of the on-going row about budgetary caps, and possibly being excluded next season, Lola could feasibly have been offered a chance on the revamped 2010 grid.