And promises not to seek re-election
Following today's World Motor Sport Council meeting held in Paris, FIA President Max Mosley stated that an agreement has been reached with the FOTA alliance, thereby putting an end to the rebel teams' plans to set up a breakaway series
"There will be no split," Mosley announced. "We have agreed to a reduction of costs."
Mosley added: "There will be one F1 championship but the objective is to get back to the spending levels of the early 1990s within two years."
New outfits will be assisted by established teams in regards to chassis and engines, allowing them to reach a respectable level of competitiveness.
It is understood that the FIA will publish its definite list of entrants in the 2010 championship later today.
The Briton, who claimed to be strongly considering a new mandate as FIA President because he believes the FOTA alliance actively sought to attack his authority, today announced that he will not seek another term as FIA President this autumn.
"I will not be up for re-election now we have peace," he said.
The eight Formula One Teams Association members were demanding a higher budget cap and a right to participation in the sport's governance, in addition to obtaining a greater share of Formula One's revenue from the commercial rights holder represented by Bernie Ecclestone.
The rebel teams have apparently signed an agreement keeping them in Formula One until 2012.
Before the WMSC meeting took place, several FOTA sources said they expected nothing would come about to change their plans, with Renault team boss Flavio Briatore even indicating that they had no interest in hearing what Mosley had to say.
In seems however that Mosley participated in several meetings with Ferrari President and FOTA chairman Luca di Montezemolo, meetings which lasted into the night and then resumed early this morning ahead of the WMSC gathering.
Polls show that the planned FOTA breakaway series, which would have featured all of F1's manufacturer teams in addition to the Brawn GP, Red Bull and Toro Rosso operations, is enjoying wide public support.