Max Mosley has finally announced  that he will not be standing for re-election as FIA president this coming October, a decision which broke the seemingly intractable conflict which threatened the very future of the world championship.

Mosley, whose style of governance was one of the key issues underpinning the determination of FOTA to split with the FIA, agreed that he would bow out from the presidency in four months time. There is no word as to will succeed him but former Ferrari sporting director Jean Todt, a close ally of Mosley, has been mentioned as a possibility.

Read: Mosley quits; FOTA series off

For their part, the dissident teams agreed to scrap their plans for a separate series. Their reward was that the FIA agreed to scrap its planned £40m budget cap for 2010, eliminating the need for any intrusive examination of the teams’ books by the governing body, although they agreed that they would work to significantly reduce budgets within the next two years.

“There will be no split,” said Mosley who has been FIA president since 1991 and been re-elected four times during the past 18 years. “We have agreed to a reduction in costs. There will be one Formula One championship but the (long-term) objective is to get back to the levels of spending of the early 1990s within two years.”