FIA president Max Mosley has revealed that he has reached an agreement with the Formula One Teams' Association (FOTA) to end the threat of a breakaway championship next season, meaning all current teams will continue to race in Formula One next season, keeping the sports in its present form. As a result of the peace brokered between the sides, Mosley will now not stand for re-election as FIA president in October, having previously vowed to contest the election in order to stop FOTA taking control of F1.

Prior to this morning's World Motor Sport Council meeting in Paris, it's believed that Mosley held meetings with FOTA chairman Luca di Montezemolo and F1 commercial rights holder Bernie Ecclestone over the past 18 hours in order to come to a definitive resolution on the sport's 2010 cost-cutting regulations and end the threat of FOTA's breakaway championship. Along with Mosley not running for re-election, the agreement is also understood to force teams to commit to F1 until 2012, while also ending their breakaway series plans.

“There will be no split,” Mosley told the media outside FIA headquarters in Paris. “We have agreed to a reduction of costs. There will be one F1 chmapionship but the objective is to get back to the spending levels of the early 1990s within two years.

“I will not be up for re-election now we have peace,” he added.

Over the course of the British Grand Prix last weekend, Mosley and Ecclestone vowed to end the ongoing dispute and bring all teams under the same championship for next season. Holding true to their word, today's news comes as a huge relief to the Formula One community, who faced seeing its beloved sport split in two. Had the breakaway gone ahead, only Williams and Force India would have been left in the bona fide F1 world championship.

The FIA is expected to unveil its final 2010 entry list later today, featuring all current teams along with US F1, Campos Racing and Manor Grand Prix.