Lewis Hamilton's world title hopes are very much alive after McLaren escaped any immediate penalty after a disciplinary hearing into claims they were in possession of confidential Ferrari documents.

Following a six-hour session of the World Motor Sport Council (WMSC) in Paris, the FIA's highest power, the verdict was "no penalty" because of insufficient evidence.

However, the FIA announced if the information stolen from Ferrari is found to be used in the future, McLaren could face the ultimate exclusion from this year's championship, and also in 2008.

Hamiton and his McLaren team-mate Fernando Alonso, currently first and second in the world drivers' championship, had faced the prospect of having points deducted, thus jeopardising the Briton's hopes of claiming the world title in his debut season in the sport.

The rookie was understandably delighted with the outcome. “Whilst it’s only my first season in Formula One with the team, I already know and appreciate the commitment and dedication of the people there," Hamilton said.

“As a result I am pleased with today’s decision and can’t wait for the rest of the season.”

Alonso, the reigning double world champion, was also delighted he is free to push for a hat-trick now the WMSC have delivered their verdict.

“Having only been part of McLaren for a few months I know how important today’s decision will be for everybody,” said Alonso, now an 11-8 favourite with bookmakers William Hill, with Hamilton at 15-8.

McLaren has said its cars do not contain any Ferrari-related alterations. Ferrari, meanwhile, described the decision not to penalise MClaren as 'incomprehensible.'

"Ferrari notes that Vodafone McLaren Mercedes has been found guilty by the FIA World Council," read a team statement. "It therefore finds it incomprehensible that violating the fundamental principle of sporting honesty does not have, as a logical and inevitable consequence, the application of a sanction.

"Today's decision legitimises dishonest behaviour in Formula One and sets a very serious precedent.

"In fact, the decision of the World Council signifies that possession, knowledge at the very highest level and use of highly confidential information acquired in an illicit manner and the acquiring of confidential information over the course of several months, represent violations that do not carry any punishment.

"The fact that Vodafone McLaren Mercedes was in possession of such information was discovered totally by accident and, but for this, the team would continue to have it.

"This is all the more serious as it has occurred in a sport like Formula One in which small details make all the difference. Ferrari feels this is highly prejudicial to the credibility of the sport.

"It will continue with the legal action under way within the Italian criminal justice system, and in the civil court in England."

Despite the WMSC's decision, McLaren team principal Ron Dennis was not happy either, even though it means his team and his drivers are free to fight for the title.

"The process has been long and detailed," said Dennis. "Although I'm not completely comfortable with the outcome, the punishment fits the crime."

Nigel Stepney, who Ferrari dismissed as their head of performance development, and McLaren's suspended chief designer Mike Coughlan, are the men accused of leaking and receiving the confidential information respectively and their futures will now be decided by the FIA.

The WMSC statement said: "The WMSC will also invite Mr Stepney and Mr Coughlan to show reason why they should not be banned from international motor sport for a lengthy period, and the WMSC has delegated authority to deal with this matter to the legal department of the FIA."

McLaren's Hamilton and Alonso lead the driver standings with seven of 17 races left in the season. Hamilton has 70 points and Alonso 68, while Felipe Massa has 59 and Kimi Raikkonen 52 for Ferrari.

McLaren also leads the constructor standings with 138 points to 111 for Ferrari.