The FIA has confirmed that new engine regulations, which will be introduced from the start of 2017, have been agreed and ratified by the World Motor Sport Council.
The announcement comes after months of negotiations between the four engine manufacturers, along with other senior Formula 1 figures, with the aim of addressing costs, performance convergence, supply and sound.
An agreement has now been "approved by all levels of the F1 governance structure" which will see the overhauled regulations introduced at the start of 2017.
Changes to the engine regulations from 2017 to 2020:
"An agreement has been reached on significant reduction in price of the power unit supply to customer teams and a reduction in cost to manufacturers over the coming years.
"In 2017 the power unit price for customer teams will be reduced by €1 million per season compared to 2016.
"From 2018 the annual supply price will be reduced by a further €3 million.
"Cost reduction on power units will be driven by changes to the sporting and technical regulations in 2017 and 2018, with a progressive reduction of the number of power unit elements per driver per season."
"Supply of power units to customer teams will be ensured, as the homologation procedure will include an 'obligation to supply' that will be activated in the event of a team facing an absence of supply."
"The new agreement includes a package of measures aimed at achieving performance convergence. The token system is to be removed from 2017. Additionally, constraints on power unit part weights, dimensions and materials, and on boost pressure will be introduced in 2017 and 2018."
"Manufacturers are currently conducting a promising research programme into further improving the sound of the current power units, with the aim of implementation by 2018 at the latest."
The statement, issued by the FIA, adds that "adherence to the measures will see the FIA commit to supporting power unit regulations stability and maintaining of the current Formula One governance structure for the 2017 - 2020 period."