Paris, 24 June (AKI) - Formula One teams on Wednesday reached a deal with the championship organisers to avoid a breakaway series flagged by major teams led by Italian carmaker Ferrari last week.

"We reached an agreement on the issue of cost reduction. There will not be a breakaway. There will be only one championship in 2010," said the Federation Internationale de l'Automobile president Max Mosley, adding that he would not seek his re-election in October.

"I will not be up for re-election, now we have peace," he said.

A group of eight disgruntled F1 teams had last week, decided to break away from the 2010 Formula One Championship and vowed to start their own series.

The teams were represented by the Formula One Teams Association (FOTA) and led by Ferrari and current championship leader Brawn GP.

The deal between FOTA and the FIA was reached during a breakthrough meeting of the World Motor Sport Council in the French capital Paris.

Present at the summit was Italian Luca Cordero di Montezemolo, president of Ferrari and chairman of FOTA.

The dispute is linked to controversial plans by the FIA to impose budget caps and technical limitations on teams in 2010 in a bid to make the competition more balanced and to make it easier for smaller teams to compete.

The FIA had given five teams a 19 June deadline to reconcile their differences. It then resulted in the announcement of a breakaway championship by major teams including Ferrari, Brawn GP, BMW-Sauber, McLaren, Red Bull Racing, Toro Rosso and Toyota.

Photo: Xinhua