Formula One racing team Jordan has dropped its 150-million pound High Court action against Vodafone concerning its claim that the mobile phone giant wrongly pulled out of a sponsorship deal.

"We have dropped the case. The team is not in jeopardy," Ian Phillips, Jordan's director of business affairs, told Reuters on Friday.

The decision by Jordan Grand Prix Limited was announced at a hearing at the High Court in London earlier on Friday.

Vodafone had said it did not enter into a binding three-year agreement with Jordan as a result of a telephone conversation between its global branding director David Haines and the racing team's boss Eddie Jordan.

Jordan had earlier argued that Haines told Jordan 'You've got the deal' and that, based on previous negotiations between the parties, this statement constituted a binding agreement.

Vodafone claimed that, while it had conducted discussions with Jordan and four other Formula One constructors in 2001, no agreement was reached with Jordan and no binding contract existed.