Williams have been suspended temporarily7 from the Formula One Teams Association for entering the 2010 championship and breaking what had been a united front in a standoff with the governing body.
The former champions are the only current team to have formally submitted an entry, with champions Ferrari and others threatening to leave the sport unless the 2010 rules are rewritten.
Team owner Frank Williams says the association's decision is regrettable but understandable.
But Williams says as a a racing team and a company whose only business is Formula One, with obligations to partners and employees, submitting an entry was unquestionable.
The FIA has set a Saturday deadline for all teams to sign up, saying potential new teams need as much time as possible to prepare.