Formula One stepped back from the brink on Wednesday as FIA president Max Mosley agreed a compromise with FOTA, the Teams’ Association, to save the sport from a rival breakaway series.

The disagreement, which centred on Mosley’s plans to introduce a budget cap for the 2010 season, had threatened to end Formula One’s 60-year existence with eight teams including champions Ferrari prepared to walk away for good.

To the relief of Formula One fans and teams including McLaren, Red Bull and Brawn GP who all faced having to start again in what would have been a hastily arranged rival championship, Wednesday’s world motor sport council meeting in Paris has finally ended that threat.

The compromise comes about as Mosley also announced that he would not stand for re-election as FIA president, something many thought would have to happen for any agreement to be reached.

The controversy of a possible split has overshadowed the sport in recent weeks but hopefully attention can now return to a season which promises a championship showdown between Jenson Button’s Brawn GP and Red Bull’s Sebastian Vettel.

Roll on Germany’s Nuerburgring.

PHOTO: International Automobile Federation (FIA) President Max Mosley (R) and Formula One commercial supremo Bernie Ecclestone attend a meeting in Paris June 24, 2009. REUTERS/Gareth Watkins