The French tyre giant Michelin has confirmed it will return to grand prix racing for the 2001 season, sparking fears of a tyre war in Formula One.

The company wants to cash in on the sport's unparalleled television exposure, possibly as suppliers to the BMW Williams team and perhaps with Toyota.

The chief executive of the Michelin group Edouard Michelin said: "This decision is part of our worldwide strategy. Racing, and formula one in particular, present a very strong potential in terms of communicating our technological leadership."

Many insiders believe the racing is closer and better balanced when one supplier has a monopoly, as has been the case for Bridgestone since rivals Goodyear withdrew from Formula One at the end of 1998.

Others think that having a tyre supply monopoly makes no more sense than obliging every team to use the same engine. But with the FIA committed to keeping lap speeds at manageable levels, there are worries that rivalry between Bridgestone and Michelin will cause them to increase.