The Formula 1 Commission has rejected the FIA's proposal for a 'client engine', which was intended to be introduced in 2017, and will now seek an alternative path for the sport to take.
In the wake of Ferrari using its veto to block planned cost reductions, the FIA announced an expression of interest for companies interested in a client engine for 2017.
The sport's governing body confirmed that four credible espressions of interest were made but the decision of Formula 1's Commission means this route is unlikely to be taken.
Instead, the parties involved have agreed to address several areas, including:
- Guarantee of the supply of Power Units to teams
- The need to lower the cost of Power Units to customer teams
- Simplification of the technical specification of the Power Units
- Improved noise
"The manufacturers, in conjunction with the FIA, will present a proposal by 15 January, 2016 that will seek to provide solutions to the above concerns," read a statement.
"The proposal will include the establishment of a minimum number of teams that a manufacturer must supply, ensuring that all teams will have access to a Power Unit.
"Measures will also be put forward to reduce the cost of the supply of hybrid Power Units for customer teams, as well as improving their noise.
"All stakeholders agreed that the developments will aim for the 2017 season at the earliest, and 2018 at the latest.
"The first meeting between the FIA and the Power Unit manufacturers on this topic will be held this week at the Abu Dhabi Grand Prix."
The FIA also noted that the decision of the Formula 1 Commission "will be reassessed after the Power Unit manufacturers have presented their proposal to the Strategy Group."