Skoda will not run a factory team in the 2006 World Rally Championship, but it will support two private outfits.
Skoda tempted Colin McRae to make a WRC return in 2005
Skoda will provide WRC 05 cars to the Czech team of Jan Kopecky and Austria's Red Bull Skoda Team.
Detlef Wittig, Skoda Auto's chairman, said: We believe that this is the most cost-effective way in which to maintain Skoda brand's presence in the series."
Britain's Colin McRae made a WRC return with Skoda this year, racing in the Wales Rally GB and the Rally Australia.
The Volkswagen-owned Czech car-maker scoring just 21 points in total and finished sixth in the standings.
Skoda's head of research and development Harald Ludanek said the company could one day make a WRC return.
"We will continue to observe the development of the championship and its regulations, and will decide at some point in the future."
The team only made a full-time return to the championship this year, having raced the Fabia in selected events in 2004.