An ECU cuts off a fuel supply to an engine when a vehicle is decelerating. The ECU sets the cancellation of the fuel supply cut-off based on the target idle speed of the engine such that the power transfer state is prevented from switching from an engine driven state to an engine drive state even if the fuel supply to the engine is restarted. When the running condition of the vehicle satisfies the cancellation condition, the ECU then cancels the fuel supply cut-off to restart the fuel supply to the engine.