Peace deal unlikely before season's start

The Briton, whose team are 40 percent owned by Mercedes' parent DaimlerChrysler, said, however, that the recent purchase of the sport's commercial rights by CVC Capital Partners was a positive step.

The carmakers want clear corporate governance, a level playing field for all and a far greater share of the sport's revenues for the teams.

"I believe those driving forces and values will exist, whatever organisation is effectively operating Grand Prix racing post 2008," Dennis said.

"Who that is, and what that is, is probably not going to come into focus for three to six months."

The season starts in Bahrain on March 12.

Despite carmakers warning that time is running out, with the end of the year seen as a turning point, Dennis suggested the situation was not that critical.

"In any negotiation one of the ingredients is time and at the moment we have to the end of 2007 to get it into focus and get it sorted," he said.

"Everybody is moving towards each other, (FIA president) Max (Mosley) has moved considerably in our direction and we've tried to move in the FIA's direction.

"And of course we are now dealing with another entity, CVC, and it is difficult to engage formally with CVC at the moment because CVC at the moment does not own Formula One.

"Until it has clearance from Brussels, until it has resolved the issue with the equity held by Lehman, it's not in a position to sit and talk to us."

CVC have bought 86 percent of Formula One after buying the stakes of German bank BayernLB, commercial supremo Bernie Ecclestone's family trust and JP Morgan.

Lehman Brothers hold the remaining shares and are in negotiations with CVC.

A well-informed source said their shareholding remained a liability to the overall CVC deal if Lehman took legal action to press its claim to first refusal on the other banks' shareholdings.

Dennis said the CVC takeover was not perfect, with a slice of the revenues still leaving the sport, but would resolve some of the carmakers' main grievances.

"One thing which is music to our ears in our discussions with CVC is that they have in the statutes of the company which is the vehicle that is going to own Formula One, all the values that we have been striving for," he said.