The FIA is to continue with its push to introduce standard engines from 2017 after Ferrari vetoed a cost cap on engines and gearboxes.
F1 commercial rights holder Bernie Ecclestone revealed in Texas over the weekend that motorsport's governing body is set to launch a tender process for a low-budget power unit supplier.
And they went another step further on Monday when the FIA confirmed that Ferrari used its right of veto to block proposals to introduce cost reduction measures.
The FIA wanted to cap the price of current spec power units at $12 million while year-old models were set to cost no more than $8m.
A statement read: "The FIA, in agreement with FOM, suggested the principle of setting a maximum price for engine and gear box for client teams at the last Strategy Group meeting.
"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
The next move is to launch a cheaper engine option from 2017 and there have been reports that Ecclestone is in favour of 2.2-litre twin-turbo V6 engines, currently being used in the IndyCar Series, which will be provided by an independent supplier.
"The FIA will initiate a consultation with all stakeholders regarding the possible introduction of a client engine, which will be available as of 2017," the statement added.
"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."