After Bernie Ecclestone said over the United States Grand Prix weekend that the FIA was planning to open up a tender for a cheap engine supply, the move was confirmed on Monday.

In a statement issued by the FIA, the governing body said it would begin dialogue with F1's stakeholders to push on with the standard engine because of Ferrari's decision to block an engine price limit.

“The FIA, in agreement with FOM, suggested the principle of setting a maximum price for engine and gear box for client teams at the last Strategy Group meeting,” said the statement.

“These measures were put to the vote and adopted with a large majority. However, Ferrari SpA decided to go against this and exercise the right of veto long recognised under agreements governing F1.

“In the interest of the Championship, the FIA has decided not to legally challenge Ferrari SpA’s use of its right of veto.”

Ferrari has long held a right to veto any technical regulations changes, as part of the extra benefits it gets for competing in F1.

It is believed to be the first time in recent history that the Italian outfit has elected to use it, and comes in the face of widespread agreement among teams that costs need to be reduced.

A proposal had been agreed among a majority of teams to limit the cost of engines to $12 million for current specification power units and $8 million for year-old ones.

Alternative plan

Instead of challenging Ferrari, the FIA wants a standard engine to be available to teams from 2017 as a means of guaranteeing a cheap power unit.

The statement added: “The FIA will initiate a consultation with all stakeholders regarding the possible introduction of a client engine, which will be available as of 2017.

“Following this consultation a call for tenders for this client engine, the cost of which would be much lower than the current power unit, could be undertaken.

“Supported by FOM, the FIA will continue in its efforts to ensure the sustained long-term development of the Championship and look for solutions enabling it to achieve this.

“It asks all of the teams to make a positive contribution to the success of this approach through proposals and initiatives in the interest of the championship and its continuation over the long term.”