Having met in Singapore last weekend, FOTA have agreed an extension to the current Resource Restriction Agreement.
Under the agreement teams ensured that they would operate within certain financial parameters, but a meeting was called to discuss this amidst fears that teams had found ways to work around the agreement.
While FOTA decided against instituting a set budget cap, the association decided to extend the Resource Restriction Agreement into 2011, a move that has been welcomed by team bosses.
McLaren boss and FOTA chairman Martin Whitmarsh insisted that the agreement was crucial to maintaining stability within Formula One.
"We've signed a heads of agreement which has gone a long way to improving it, extending it, making further reductions, and closing the known loopholes," he said.
"There's an obligation within the agreement that if anyone knows of a loophole that they declare now or if subsequently they learn of them they do something about it.
"I think it's a good step forwards in trying to manage the resources in F1, creating stability, and just an improvement on that approach. It took compromise from all of the F1 teams to achieve that. I think a week ago not many people would have predicted that we would have been able to achieve that. All credit to the F1 teams for being very sensible and co-operative, and that spirit enabled us to get quite an important agreement in place today."
Ferrari boss Stefano Domenicali echoed the sentiments of Whitmarsh and admitted that while Ferrari may have the resources to spend above and beyond what had been agreed to, they understood the importance of creating a situation that was workable for smaller teams.
"We can have a fantastic income, but we cannot race alone," Domenicali told SpeedTV.
"We think that what has been achieved is good for F1. It's important on the other hand that the other small teams will appreciate what we're doing, because if you stretch too much, then you break the cord.
"But this is for sure something that was needed for the future of F1, because it's a moment where our sport needs to do some changes in terms of general approach, and Ferrari wants to play a fundamental role in that," he added.
