Red Bull team principal Christian Horner has welcomed the prospect of Porsche and Audi entering Formula One, declaring a potential link-up with the brands as "eye-wateringly exciting".
The Volkswagen Group confirmed on Thursday plans for an entry once technical regulations to make the sport more sustainable are set.
There has long been speculation about potential partnerships between existing teams and the Audi and Porsche brands, with former champions Red Bull and McLaren mentioned in particular.
Horner said it now made sense for Red Bull to engage in "more detailed discussions" with Volkswagen given more clarity from the car-maker about its plans.
"It's exciting for Formula One, it's exciting for Porsche and Audi, and a potential link-up with Red Bull would be eye-wateringly exciting," he told reporters at the Australian Grand Prix on Saturday.
"Now, where we are on our journey, it's non-dependent on an OEM (original equipment manufacturer) coming in and partnering with the team.
"But, of course, it would be very logical to hold those discussions."
Red Bull have set up their own powertrain company to take over from Honda, who formally withdrew at the end of last season but are still assembling the units and providing trackside support.
McLaren, Aston Martin and Williams all use Mercedes power units at present with the latter two also seen as potential Audi partners.
Audi and McLaren denied reports last year that a partnership had already been formed.