That is the conclusion on Tuesday of a report in the Frankfurter Allgemeine Zeitung newspaper.
Last month, following speculation the German giant was considering entering F1 with Audi or Porsche branding, it emerged that VW would discuss the possibility during a meeting in early November.
The FAZ newspaper, citing definite but unnamed sources, now says Volkswagen chairman Ferdinand Piech has decided the marque will not be entering F1.
Interestingly, the report said Red Bull and McLaren had expressed their interest in being supplied engines by Volkswagen.
FAZ said VW is still interested in entering the world rally championship, as well as operating two programmes – with Porsche and Audi – at Le Mans.