The FIA has revealed plans to introduce a budget engine into Formula 1 from 2017 after Ferrari blocked plans for a price cap on power units.

The world motorsport governing body is keen to address rising costs in the sport which has ultimately led to plans for a tender process to find a manufacturer for a ‘client’ engine.

Complex V6 hybrid engines introduced in 2014 have seen the costs of power units rise significantly for customer teams.

A maximum cost for engines and gearboxes was discussed at a recent F1 Strategy Group meeting garnering support from the majority of teams except Ferrari, who chose to veto the plan.

The FIA has decided not to challenge the decision but will press forward on plans to launch a budget engine into the category.

“The FIA, in agreement with FOM, suggested the principle of setting a maximum price for engine and gearbox for client teams at the last Strategy Group meeting,” read a statement from the FIA.

“These measures were put to the vote and adopted with a large majority.

“However, Ferrari SpA decided to go against this and exercise the right of veto long recognised under agreements governing F1.

“In the interest of the championship, the FIA has decided not to legally challenge Ferrari SpA’s use of its right of veto.

“Therefore the FIA will initiate a consultation with all stakeholders regarding the possible introduction of a client engine, which will be available as of 2017.

“Following this consultation a call for tenders for this client engine, the cost of which would be much lower than the current power unit, could be undertaken.

“Supported by FOM, the FIA will continue in its efforts to ensure the sustained long-term development of the championship and look for solutions enabling it to achieve this.

“It asks all of the teams to make a positive contribution to the success of this approach through proposals and initiatives in the interest of the Championship and its continuation over the long term.”

While details concerning the ‘client’ engine are yet to be revealed, if the tender process is successful there is a chance two different specification engines could feature in the championship in 2017.