David Richards toasted his return to Formula One, claiming his Banbury-based Prodrive company have earned their move into motorsport's elite.

Prodrive were named as the 12th team on the 2008 grid this morning by world governing body the FIA, who also accepted entries from all 11 current squads.

Richards feels Formula One is the natural next step for Prodrive, who already have a glittering history in other categories.

The Welshman said: "This is wonderful news for everyone in the company.

"We have won World Rally Championships, British Touring Car titles and the GT1 class at Le Mans, and have been saying for some time that we would also like to be in Formula One with our own Prodrive team. We are now one step closer."

Prodrive's F1 effort will be based at their current Banbury headquarters until a new state-of-the-art factory in Honiley is built.

FIA president Max Mosley was impressed by Prodrive's bid, which beat off stiff competition from the likes of Carlin Motorsport, the Jean Alesi-led Direxiv outfit and BAR co-founder Craig Pollock.

He revealed Prodrive have found the finances to support their bid, adding: "Prodrive have the best combination of financial backing, technical capability and motor sport experience and are well known to the FIA through their participation in the World Rally Championship.

"Also, Prodrive's chief executive, David Richards, has experience as a Formula One team principal."

Prodrive were the one new applicant chosen from 11 hopefuls and Mosley believes that level of interest is a good sign for the future of the sport.

As recently as last year, Formula One was faced with the prospect of two teams - Jaguar and Jordan - folding before last-minute buyers were found but Mosley feels his cost-cutting plans have re-ignited interest.

Speaking about the high number of entrants, he said: "I was delighted but not entirely surprised.

"Formula One is the pinnacle of motor sport and thanks to the new regulations brought in for 2008 it is potentially open to more teams.

"What pleased me most was the high calibre of entries received. With this kind of demand Formula One has a bright future.

"The 2008 sporting regulations have reduced the cost of competing and should improve the sporting spectacle at the same time. It makes for a very attractive prospect."