Formula One's team owners will present a package of radical cost-cuts to the FIA World Motor Sport Council next week, as they move to head off the threat of a standard engine being introduced.
Following unanimous agreement in a meeting of the Formula One Teams Association (FOTA) in London on Thursday, it was confirmed in a statement by the organisation that the teams plan to propose a new low-cost engine for 2011 and the implementation of substantial cost-cutting measures for the next two years.
These are believed to include drastically reducing the current 30,000km testing limit by half.
"FOTA met today in London to address the relevant commercial challenges that are faced by Formula One," read the statement. "The teams had previously unanimously agreed measures that will significantly reduce costs in 2009.
"In today's meeting the teams have agreed to further measures implementing substantial cost cutting for 2009 and 2010, and additional initiatives to improve the show.
"Furthermore it is unanimously agreed that a new low cost engine will be introduced in 2011."
The FIA has asked for teams to come up with concrete proposals to reduce costs in the sport, with FIA president Max Mosley warning that F1 is currently unsustainable. Such moves are set to have a new urgency from tomorrow, with Honda's F1 future in serious doubt.
The new engine formula being proposed is believed to be based on a 1.8-litre turbocharged unit featuring energy recovery systems and designed to consume 30% less than current fuel levels.
FOTA also confirmed that it will make proposals to spice up qualifying. The new idea being considered consists of all cars being on track at the same time with the same amount of fuel, with the slowest driver being eliminated after each lap.