McLaren will exit the all-electric Formula E championship at the end of the 2024-25 season to focus on Formula 1, IndyCar and a new hypercar project from 2027 in the World Endurance Championship.
McLaren, the reigning Formula 1 constructors' world champions, said in a statement on Friday that the decision after three seasons in Formula E followed a strategic review of activities.
"The time is right to explore other opportunities that more closely align with McLaren Racing's overall strategic direction -- including our 2027 entry into the FIA World Endurance Championship," McLaren CEO Zak Brown said.
"For now, we are focused on setting this great team up for future success by working towards securing a new owner."
A Formula E spokesperson said there remained the possibility of McLaren continuing through to the end of the series' Gen3 era in 2026.
McLaren are aiming for the so-called "Triple Crown" of winning the Monaco F1 Grand Prix, Le Mans 24 Hours race and Indianapolis 500.
Formula E, a 10-year-old series that started out with city-based races and also has a round in Monaco, lacks a true standout event.
Jeff Dodds, chief executive of the Liberty Global-owned electric series, said brands came and went and while losing McLaren was a blow there was an opportunity for another manufacturer to get involved.
"I can't sugar-coat it, it's bad news," he told reporters on a video call. "We can't deny McLaren's a power brand in racing and therefore we would prefer they continued in the championship.
"But we have currently six manufacturers in the championship, and five of those have already signed up and committed to Gen4.
"And these are not small manufacturers: Porsche, Jaguar, Nissan, Stellantis Group, Yamaha, these are big globally recognised manufacturers. So I think we're in a really good place."
McLaren took over the British-based team from Mercedes when the German carmaker left at the end of 2022 to focus on Formula One.
Audi and BMW have also come and gone over the years and Dodds said it was a tricky time for manufacturers, with tariffs and uncertainty in the global marketplace, but that it was a storm the series would ride out.
Liberty Global, he added, had a long-term approach to their investment with Formula E boasting a global fan base of nearly 400 million.
The McLaren team, sponsored by Saudi Arabia's NEOM, was founded in 2019 and ran separately, under the leadership of Ian James, to McLaren's Formula One and IndyCar outfits. It is third overall after five rounds.
"McLaren are what I would call a pure customer team," Dodds said.
"The powertrain comes from the very successful Nissan team ... so it is a branding exercise for McLaren in that sense."