Just as some members of the paddock were reconciling themselves to the fact that the FIA was hell-bent on introducing 'standard spec' engines to Formula One, motor racing's international governing body pulled back from the brink.

McLaren Instead of pursuing this route, the FIA and the teams concluded an elegant compromise that could be seen as a partial victory for both sides.

The teams will be able to continue using the current-generation 2.4-litre V8 engines - albeit significantly detuned - while FIA president Max Mosley's calls for cost reduction from next season have been accommodated.

The manufacturers have also each agreed to supply up to two independent teams from 2010 at no more than 5m euros per team.

The deal is calculated to retain the interest of major car manufacturers Renault, Mercedes-Benz, BMW and Toyota only a week after the escalating costs of the sport caused Honda to withdraw.