Ferrari has announced that it will 'reconsider its participation' in F1 if the FIA pushes through its proposal to make teams use a standard engine.
Ferrari is bitterly opposed to the plans, which the FIA claims will help to cut spiralling costs in F1.
In a statement issued after a board meeting the team said: "The Ferrari Board of Directors expressed strong concerns regarding plans to standardise engines, as it felt that such a move would detract from the entire raison of a sport with which Ferrari has been involved continuously since 1950, a raison d'etre based principally on competition and technological development...
"The Board of Directors expressed the opinion that should these key elements be diminished, it would have to re-evaluate, with its partners the viability of continuing its presence in the sport."
Toyota has also threatened to quit F1 if standard engines are introduced, but the FIA has already introduced a tender so that interested parties can bid to supply standard engines from 2010 to 2012.
Ferrari's decision has put it on course for a direct confrontation with the FIA and its president, Max Mosley.