The FIA has confirmed that it is investigating whether to introduce a 'client engine' for 2017, which would be cheaper than the power units currently used in Formula 1.
The sport has been attempting to push through cost-cutting measures and while the Strategy Group reached an agreement, Ferrari used its historic veto to block such proposals.
The FIA has reacted to Ferrari's stance by confirming plans to introduce a standard engine in 2017, which would be cheaper than the current power units.
"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," read an FIA 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.
"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.
"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."