HUNDREDS of jobs have been saved at Lotus after a takeover by Renault was finalised last night.

The announcement ends months of speculation over the two companies' future in Formula 1.

It comes after HM Revenues and Customs (HMRC) had applied to put the Lotus team into administration over unpaid bills relating to income tax and National Insurance.

In September Renault signed a "letter of intent" to take over the Enstone-based business, which would lead to jobs being saved.

Although the takeover still has some terms to be agreed, a Renault spokesperson said it was hoped talks would be completed "in the shortest timeframe possible." 

Renault chairman and chief executive Carlos Ghosn said: "Renault had two options - to come back at 100 per cent or leave.

"After a detailed study, I have decided that Renault will be in Formula 1, starting 2016.

"The final details supplied by F1's main stakeholders gave us the confidence to accept this new challenge.

"Our ambition is to win, even if it will take some time."