Instead they plan to speak to the sport’s stakeholders about introducing a cheaper, alternative engine to those already supplied by Mercedes, Ferrari, Renault and Honda, to be made available in 2017.

“The FIA, in agreement with FOM (Formula One Management), suggested the principle of setting a maximum price for engine and gearbox for client teams at the last Strategy Group meeting,” the statement read.

“These measures were put to the vote and adopted with a large majority. However, Ferrari 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’s use of its right of veto. Therefore 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.”

The sport switched from V8 engines to the highly complicated and costly 1.6-litre turbo V6 power units in 2014 which have powered Lewis Hamilton to successive titles.

Bernie Ecclestone, Formula One’s chief executive, who is not a fan of the sport’s current engines, said that British manufacturer Cosworth will be one of two independent engine suppliers to be made available.

“They will probably have more power and use more fuel,” said Ecclestone, who insists the proposal of a cheaper engine will not lead to a two-tier championship.

“It means there will be some regulation changes which have already been anticipated for 2017 anyway so there is nothing new.

“Maybe we will have to have refuelling again for those that want it. If people have got an engine that is super efficient they won’t want to.”