Aston Martin wants to take on arch-rival Ferrari on the racetrack.

The British brand is considering joining the Formula One field as an engine supplier when new powertrain rules come into effect in 2021. F1 rule makers are reportedly shaping the next generation rules to focus on cheaper, less complex hybrid engines than the current 1.6-litre V6 turbo petrol-electric hybrids.

Aston Martin CEO Andy Palmer was present at the most recent meeting around the new rules and has spoken about his interest in expanding the brand's current involvement. At present it is a sponsor of the Red Bull Racing team, which Australian Daniel Ricciardo drives for, and the two companies are working together on the Aston Martin Valkyrie road car project.

The Valkyrie has been designed in part by Red Bull's technical boss Adrian Newey alongside the Aston Martin team and implements several F1 techniques. The engine for the Valkyrie is a naturally-aspirated 6.0-litre V12 built by racing specialists Cosworth.

That has led to speculation that Aston Martin, Red Bull and Cosworth could form a partnership to build an engine for 2021 and beyond.

Speaking to British publication, Autosport, Palmer acknowledged Aston Martin's interest in joining F1 as an engine supplier under the right circumstances.

"We sit on the periphery of F1, with the Valkyrie, and with Red Bull," Palmer is quoted in Autosport.

"There's always that question, would you want to enter as a team?

"Our major competitor is Ferrari, so in that sense there's a rationale in being involved in some way.

"But for a company that's only just moved to making a profit we don't have the 350-400 million a year that you have to spend on F1.

"If - and it really is the big if - there is a cap put on the number of people or the amount of money that you can spend on developing a new engine, and it's at a reasonable level, we have a good reason to study it.

"At the moment there are lots of opinions, and it's still morphing into whatever the final idea will be."

Cosworth is the second most successful engine supplier in the history of F1, winning 176 races between 1967 and 2003 in partnership with Ford.

Despite the connections to Cosowrth Palmer didn't rule out working with a different partner, with both Ilmor (another former F1 engine builder), Ricardo (which is building the gearbox for the Valkyrie) and Zytek also present at the recent rules debate.

Representatives from Volkswagen Group were also present amid speculation that Audi or Porsche could finally enter the sport when the new rules begin.