Ferrari has threatened to "re-evaluate" its commitment to formula one should the governing body impose standard engines. Despite also boasting of increased revenues and profits after a board meeting on Monday, the famous Italian team made clear its strong opposition to cost-cutting via the method of homogenizing powertrain design.

In a statement issued after the board meeting headed by president Luca di Montezemolo, Ferrari said it believed Max Mosley's plan would "detract from the entire reason" of a sport "based principally on competition and technological development".

"The board of directors expressed the opinion that should these key elements be diminished, it would have to re-evaluate, with its partners the viability of continuing its presence in the sport," the statement warned.

Ferrari, nonetheless, pointed out its "wholehearted commitment" to cost-cutting in F1.

The FIA thinks no quitting over spec-engines will be necessary, however.

"It seems the Ferrari board were misinformed," said a statement issued by the Paris based body, whose president is the controversial figure Max Mosley.

The sport's ruling federation said Ferrari seems to have overlooked the alternative option of making available engine supply packages to small teams for €5m per season.

"It is now for the manufacturers to agree one of the three FIA options or themselves produce concrete proposals to reduce costs to a sustainable level," the statement said.

"If neither happens, the FIA will take whatever measures prove necessary to preserve a credible world championship for both drivers and constructors."

It was also reported recently that Toyota has also threatened to quit F1 over the issue of standard engines, but the Japanese team issued a clarification on Monday.

"We believe formula one must remain a technological challenge; this is an important point for Toyota and provided this does not change we expect to continue in formula one until at least 2012," Toyota said.

—GMM, for Motor Authority