Dr Helmut Marko is expected to formalise Red Bull’s threat to quit Formula 1 at a key meeting on Monday over the engine situation.
Red Bull is looking into taking over the IP to Honda’s power unit technology and operations from 2022, but only if the sport’s current regulations are also tweaked - including a development freeze.
"We want to stay in Formula 1," Marko is quoted by f1-insider.com.
"But we have to be able to race to win too. If that isn’t possible because we, as normal engine customers, feel the disadvantages are too great, then it makes no sense to stick with it."
Ahead of Monday’s meeting with Liberty Media, the FIA and the engine manufacturers, Ferrari is tipped to oppose moves to fast-forward a development freeze.
Red Bull’s next steps - including the possibility that Mercedes’ departing engine guru Andy Cowell might lead Red Bull’s in-house engine program - depends in part on the outcome of the sport’s engine talks.
"There are stories about this," Red Bull team boss Christian Horner is quoted by Auto Hebdo when asked about Cowell.
"I don’t know what his plans are but we are still processing Honda’s announcement."
What is clear is that no matter what is decided for Red Bull’s main team, the sister outfit at Alpha Tauri will follow suit.
"I don’t want us to have to design our own gearboxes, rear suspension and other components again," team boss Franz Tost said. "We want to continue to strengthen the synergies between the two teams."