http://www.wrc.com/page/BreakingNewsDetail/0,,10111~732890,00.html

Reigning manufacturers’ champion Citroen has confirmed that it will make a full-time return to the World Rally Championship in 2007, and will remain represented at rallying’s top level next year with a privateer team running a revamped Xsara WRC for newly-crowned double champion Sebastien Loeb.

Both Citroen and Peugeot – part of the French PSA conglomerate – announced last year that they were pulling out of the WRC at the end of 2005 with Peugeot looking at running a diesel-powered car in the Le Mans 24hrs sportscar endurance race. Citroen motorsport boss Guy Frequelin has always said that he remained keen to make a return to the WRC, however, if the costs of competition could be lowered.

Following discussions by the FIA, world motorsport’s governing body, on the sport’s future direction this week, Citroen has confirmed the long-discussed rumours that it will make a full-time return in 2007. During next year’s sabbatical, it will support a privateer team running a version of the multi-title-winning Xsara WRC adapted to the 2006 regulations. Citroen stalwart Loeb will drive for the outfit. The works Citroen team will resume its already-started development of an all-new car based on the recently-launched C4 coupe.

“The decision to return was taken very quickly,” said Frequelin. “The new regulations allow us to meet our budget targets. There is no longer anything standing in the way of our return to the sport. For the team, for the fans and for all those who have supported us during our past three complete seasons in the WRC, this decision couldn’t have come at a better time. I am delighted.”

The news of Citroen’s continued involvement in the WRC is a major boost for the series and ensures the continued involvement of four manufacturers – Ford, Subaru, Mitsubishi and Citroen – for next year, with Skoda discussing a continued works assault and Peugeot represented by privateer teams. No announcement has yet been made on which team will run Citroen’s privateer effort, although current privateer team Kronos and ORECA have both been mentioned by Loeb as possible candidates.