Motorsport story by sport.co.uk, Fri, 26 Jun 2009 01:47:01 GMT



An agreement has been reached between motorsport's governing body (FIA) and the Formula One Teams' Association (FOTA) to end the salary cap feud that has threatened to tear Formula One apart. As many as eight teams planned to form their own rival breakaway series in protest, but F1 boss Max Mosley insists there will be no split. The FOTA and the FIA had been at loggerheads over planned budgetary and technical changes for the new season, but it seems a peaceful resolution has been found following a meeting of 120 members of the FIA.



"There will be no split. We have agreed to a reduction of costs," said F1 boss Max Mosley.




"There will be one F1 championship (but) but the objective is to get back to the spending levels of the early '90s within two years,"




F1 supremo Bernie Ecclestone added that he is 'very happy common sense has prevailed' after the meeting in Paris.




It is believed Mosley has agreed not to stand for re-election as president when his current mandate expires in October as part of deal following Wednesday's meeting.




Writs that had been threatened against Ferrari and the other rebel teams -McLaren, BMW Sauber, Renault, Toyota, Red Bull Racing, Toro Rosso and Brawn GP - are also likely to be withdrawn.



Prior the meeting, Mosley had insisted he would not step down as head of World Motor Sport as president and would seek re-election, but has now performed a U-turn in order to solve the bitter feud.