Nissan has now confirmed it has “agreed to part ways with Albon exiting his contract to take up a different opportunity in motorsport.”
“Nissan thanks Albon for his efforts to date and wishes him the best of luck for his future endeavours,” it added.
The team will confirm the identity of Sebastien Buemi new team mate on Friday.
Albon finished third in the Formula Two championship last weekend behind George Russell and Lando Norris, both of which have confirmed F1 seats for next season.
Toro Rosso has already announced Daniil Kvyat as one of its drivers for next year. Pierre Gasly is leaving to join Red Bull, meaning Brendon Hartley would lose his place at the team if Albon is confirmed
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