• Max Mosley: 'I will not stand for re-election now we have peace' • Parallel Formula One championship headed off at key meeting

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

The cost-cutting deal followed a meeting of 120 members of the FIA and came in the wake of weeks of bitter argument between the two bodies that centred on proposed tough spending limits from next season. "There will be no split. We have agreed to a reduction of costs," said the FIA president Max Mosley. "There will be one F1 championship, but the objective is to get back to the spending levels of the early 90s within two years."

As a result of the deal Mosley said he would not seek to extend his time in office: "I will not be up for re-election now we have peace," he said. The 69-year-old has been under pressure amid the disagreements emanating from the proposed budget cuts but had announced over the weekend that he was seriously considering running for a fifth term as head of F1's governing body. Bernie Ecclestone commented that he was "very happy common sense has prevailed".

Eight teams – Ferrari, McLaren, BMW Sauber, Renault, Toyota, Red Bull, Toro Rosso and Brawn GP – had said they were pulling out of F1 last Friday after talks broke down over the introduction of a voluntary £40m budget cap from next season. The Paris meeting offered an opportunity for member clubs to hear from teams about their plan to break away from the FIA and set up a rival series, a proposal that had led the FIA to prepare a legal claim against Fota.

It is apparent a trade-off has unfolded - with the current teams now due to be on the grid for 2010, and without Mosley as ruler. It has to be remembered though that five years ago, in June 2004, Mosley announced he would stand down from his position in October of that year - only to rescind his decision a month later.

Next year's line-up

The following teams have been accepted for the 2010 FIA Formula One World Championship:

Scuderia Ferrari Marlboro

Vodafone McLaren Mercedes

BMW Sauber F1 Team

Renault F1 Team

Panasonic Toyota Racing

Scuderia Toro Rosso

Red Bull Racing

AT&T Williams

Force India F1 Team

Brawn GP Formula One Team

Campos Meta Team

Manor Grand Prix

Team US F1