PARIS: Peace broke out in Formula One yesterday when a deal was reached to avert a breakaway series and teams agreed to further cut costs.

Embattled FIA president Max Mosley, who said he would not be seeking re-election, had been at loggerheads with eight teams over his plans to introduce a budget cap for 2010.

"The basic news is that there will be no split. There will be one championship in 2010 which is I think something we all hoped," Mosley told a news conference following a meeting of the FIA's World Motor Sport Council.