Last month, Ferrari said Stepney was involved in an incident ahead of the Monaco Grand Prix.

In Monaco, the team discovered a mysterious white powder on the gas tanks of their two cars. The reports said that the powder was sent for examination to the police, while the parts were removed and replaced.

Ferrari team principal Jean Todt was quoted as saying: "The fact that we have handed a report to the prosecutor shows that we have discovered something illegal."

Today, the Italian newspaper La Gazzetta dello Sport reported that the Briton had been dismissed after an internal investigation. According to Italian media, the police searched Stepney’s house and found incriminating evidence.

Still, Stepney’s lawyer Sonia Bartolini said that his client is innocent and that she has proof of this.

"I can confirm Nigel Stepney is no longer an employee of Ferrari," a spokesperson confirmed to the Press Association.

On last Sunday, Ferrari obtained a one-two in French Grand Prix, but they are still 25 points behind their rivals, McLaren-Mercedes. Ferrari’s drivers, Raikkonen and Massa are on the third and fourth position in driver standings.