The former champions are the only current team to have formally submitted an entry, with champions Ferrari and others threatening to leave the sport unless the 2010 rules are rewritten.
"Following Monday's confirmation that the team has submitted its formal entry...the Formula One Teams Association has today decided temporarily to suspend Williams F1 from membership of FOTA," the team said in a statement.
"FOTA's decision, although regrettable, is understandable," added team owner Frank Williams.
"However, as a racing team and a company whose only business is Formula One, with obligations to our partners and our employees, submitting our entry to next year's Championship was unquestionable.
Published 27 May 2009, 16:25 IST