Team principals from all ten Formula One teams have agreed to form a new association which will work with the FIA to establish a host of new regulations for the sport.

The teams met with Bernie Ecclestone and Donald McKenzie, representing commercial partners CVC, at Ferrari's headquarters in Maranello yesterday to discuss the new framework which will be responsible for establishing rules to help cut operating budgets and fuel consumption by 50 per cent.

A statement read: "The teams have subsequently agreed unanimously that they will establish the new Formula 1 Teams' Association to work with the FIA and FOM (Formula One Management) to agree upon regulations and commercial conditions which will provide a framework for a strong and dynamic sport."

Formula One is currently being run without a Concorde Agreement, the contract that dictates the terms by which the teams agree to participate, however, yesterday's meeting was designed to help set up a new agreement to safeguard the future of the sport.