Lotus boss Dany Bahar has written to the sports car maker's entire dealer network to tell them that their current contracts will terminate in July 2012.
According to Autocar, Lotus's current contract with its dealers requires a two-year notice period for the termination of contracts.
Existing dealers and franchise holders will be able to apply for a new contract, but Lotus won't yet reveal exactly what it plans to do with its European sales network.
Lotus will also reveal its new product plans - though not necessarily its sales network strategy - at the Paris motor show in September.