THE FORMULA ONE TEAMS ASSOCIATION and the FIA have reached a compromise agreement ending the threat of a breakaway championship after President Max Mosley agreed not to stand for re-election in October.

Mosley had previously written to motorsport confederations around the world outlining his plan to stand for the FIA’s top job again to combat FOTA’s attempts to wrest control of the Formula One championship.

However, following a meeting of the World Motor Sport Council, Mosley announced there will be no breakaway championship, while confirming that he will end his time at the helm of the FIA.

According to Autosport, Mosley said:

“There will be no split. We have agreed to a reduction of costs. There will be one F1 championship but the objective is to get back to the spending levels of the early 1990s within two years.”

FOTA and the FIA were reportedly on the verge of reaching a deal to sign up to the Formula One championship for a further three years last week, only for Mosley to make a last minute change; thus prompting the teams to immediately end negotiations and announce the launch of a parallel series.

The revelation sent the FIA into crisis mode as Mosley and F1 commercial rights holder Bernie Ecclestone made a series of contradictory statements regarding the sport’s future, deferring plans to confirm the 2010 list in a seemingly vain attempt to stop FOTA’s plans.

However, led by Ferrari President Luca di Montezemolo and Renault’s Flavio Briatore, FOTA insisted plans to start up the new series were well advanced, and that the prospect of a new elite motoring championship was inevitable.

While the WMSC meeting was believed to be a key turning point in determining the shape of Formula 1, the announcement of a compromise has caught many off-guard considering Mosley’s initial refusal to step down.