The government has received a massive symbolic boost to its anti-smoking campaign after one of the world's biggest tobacco brands suggested it may withdraw from Formula One sponsorship.

Tobacco giant Philip Morris is considering winding down its high profile Marlboro brand's £45m a year sponsorship of world champion driver Michael Schumacher's Ferrari car.

The government's tobacco bill, which will impose a staged ban of all tobacco advertising, sponsorship and promotion, today reaches its remaining stages in the Commons before passing to the Lords.

The bill controversially made Formula One a special case and allowed it a special three-year extension until 2006 to implement the ban. But Philip Morris said it would continue with only "low-key" sponsorships after 2002 in order to release funds to fight multi-million dollar compensation claims from former smokers.

The company's chief executive Geoffrey C Bible told German magazine Focusi: "After 2002 the engagement will only be at lower levels and on an economy flame. We have to find ways of saving money to meet these claims."

Anti-smoking lobby Action on Smoking and Health (Ash) welcomed the reports: "Marlboro has been a principle sponsor for so many years it would be a significant move from our point of view - it's very encouraging."

The tobacco advertising and promotion bill fulfils the government's 1997 election manifesto commitment to ban tobacco advertising as part of its bid to cut UK lung cancer death rates.

The bill, introduced last December, was opposed by the Tories who questioned whether tobacco advertising actually increased consumption. But it is expected to pass to the Lords unscathed - aside from government ammendments likely to strengthen the bill, such as the commitment to create a Tobacco Regulatory Authority.

The Department of Health is expected to implement the advertising ban within a few months of the bill receiving royal assent later this year, and the sponsorship ban by 30 July 2003.

• Four out of ten people who had promised to stop smoking as part of government-backed smoking cessation services had successfully done so four weeks after their target quit date, according to latest figures.