Red Bull team principal Christian Horner says interest from the Volkswagen Group in Formula One is great for the sport, but warned that stories suggesting a tie-up with his team are "pure speculation".
In a BBC report, former team owner Eddie Jordan said VW is on the verge of a deal to buy Red Bull with the view of producing its own engines in time for the 2018 season. The deal would see Red Bull switch to customer Ferrari engines in the interim before becoming a full works outfit when the engines are ready, most likely under the Audi brand which is owned by the VW Group.
Asked about Jordan's story, Horner said: "Sometimes he gets it wrong too!"
But added: "I think it is great that VW have been showing interest in Formula One, but it is all pure speculation at the moment and even if they were to decide to commit to come into Formula One, you are looking at a minimum, within these frame work of regulations, of two to three years away at least of being able to produce a competitive engine."
But Horner, whose team is on the brink of parting ways with Renault after an uncompetitive start to the season, says Formula One needs more than just two engine manufacturers capable of winning races - as has been the case this season.
"I think it is important for Formula One to have competitive engine manufacturers because what we are rapidly descending upon is two dominant engine suppliers and that ultimately isn't healthy for Formula One.
"With the V8 you had three or four competitive engines that were capable of winning. Now you have only got two engines that are capable of winning races on merit and that is not particularly healthy."
Horner said it was simply a matter of time before the split with Renault is confirmed for 2016.
"Our situation is becoming more clear. We have had some good discussions with Renault during the past week and obviously the conclusions of those discussions will be fairly imminent. The implications that has for the future, however, are far from clear at the moment."
Asked about negotiations with Ferrari, he added: "We have had healthy dialogue with Ferrari and we are waiting feedback."