The Formula One Teams' Association have agreed not to form a breakaway series after meeting with the FIA.
Mosley and FOTA reach agreement in Paris
The Formula One Teams' Association (FOTA) have decided against forming a breakaway series after reaching an agreement with the FIA on Wednesday.
The eight current members had threatened to form a rival series after the FIA introduced a £40million budget cap for the 2010 season.
FIA president Max Mosley insisted that he would not leave his position as part of the deal but has announced that he will not stand for re-election in October.
The 69-year-old will bring his 16-year presidency to an end in an apparent trade-off that sees the FOTA teams on the 2010 grid without him in control of the sport's governing body.
"I will not be up for re-election, now we have peace," he said.
The Paris meeting between 120 members of the FIA's World Motor Sport Council and FOTA representatives was held as a final chance for the two bodies to hammer out a deal.
According to early reports, the budget cap has been abandoned and the regulations for next year's championship will remain the same as this season.
However, Mosley did stress that Formula One remains committed to cost-cutting.
Agreement
"The basic news is that there will be no split. There will be one championship in 2010 which is I think something we all hoped," Mosley told a news conference.
"We've reached agreement on a number of items. In particular we've reached agreement on reduction of costs. We've had significant help from the teams. The objective is to get back to early 1990s levels within two years."
"Early 1990s levels" is still thought to refer to a figure around the £40million mark.
FOTA, headed by Ferrari president Luca di Montezemolo, had objected to the budget cap, which they felt could lead to a two-tier series with the teams agreeing to the cap being allowed greater technical freedom.
Mosley wanted to use the cap both to cut costs in line with the global economic crisis and attract new teams to the sport but FOTA argued they were already cutting costs and that no new regulation was needed.
Although the budget cap was the catalyst for the stand-off, the manner the regulation was introduced also angered FOTA, who saw Mosley's approach as dictatorial.
Mosley in turn said that the manufacturers were intent on taking control of F1 from its governing body.
Matters came to a head last Thursday when FOTA announced plans for a breakaway series, but the teams have now committed themselves to F1 until 2012.
"Now the manufacturers, that's to say FOTA, have committed commercially until 2012...as far as the FIA is concerned the commitment is indefinite," Mosley said.
Although now stepping down in October, Mosley hinted earlier this week he wanted to stay on in his post and would not be forced out.
"I will now be able to look at Formula One knowing it's peaceful and stable and be able to stop as was always my intention in October of this year so I won't present myself for re-election now that we've got peace," he added.
Common sense
A deal was agreed after Formula One commercial rights controller Bernie Ecclestone held talks with both Mosley and di Montezemolo on Tuesday night
"I'm obviously very, very happy that common sense has prevailed which I've always believed it would because the alternative was not good at all," Ecclestone said.
"I'm also I must say very, very, very happy that the teams have come to their senses to stop spending large amounts of money."
Di Montezemolo, who had been due to chair a meeting on Thursday to discuss FOTA's breakaway plans, said he was pleased that this year's rules will continue next season.
"I think the decisions we have shared this morning are important. We will have the rules of 2009, same rules for everybody. It means that we have stability," he said.
Although both sides initially gave the impression of compromise, a statement posted later on Ferrari's website gave no doubt as to who they thought had won the battle.
"The FIA's World Motor Sports Council has today approved all FOTA's proposals," it said. "The objective is to avoid continuous changes decided by one person alone."
Click
here to read the FIA's statement about the agreement.
