Last updated: 24 june, 2009 - 13:04 GMT

Formula One breakaway averted

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Formula One's world governing body the FIA and the F1 teams association Fota have agreed there will be no parallel championship next season following talks in Paris to avert a threatened breakaway.

The two parties had been engulfed in a bitter row over planned budgetary and technical changes for the 2010 season, but it appears a resolution has now been found.

FIA president Max Mosley insisted that he would not leave his position as part of the deal but has announced that he will not stand for re-election in October.

"I will not be up for re-election, now we have peace" Mosley said.

The Paris meeting between 120 members of the FIA and Fota representatives was held as a final chance for the two bodies to hammer out a deal.

"There will be no split. We have agreed to a reduction of costs," added the 69-year-old Briton .

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

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

The agreement ends two months of wrangling since Mosley announced after a World Council meeting at the end of April that a voluntary $66m budget cap would be imposed from next season - a plan that prompted a rebellion from eight teams, with Fota announcing on Thursday they were planning a rival series.

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