The FIA and Formula 1 have confirmed that all 10 current teams have signed up to the new Concorde Agreement, tying them to the championship through 2025.
Formula 1 chiefs have been undertaking negotiations with teams in recent months over the new agreement, which covers the 2021 to 2025 seasons.
Formula 1 will next year introduce a cost cap, which will lower to $135m by 2023, while new regulations are due to come into force from 2022.
Formula 1’s three most successful teams – Ferrari, Williams and McLaren – confirmed on Tuesday that they had signed up to the new agreement.
On Wednesday the FIA and Formula 1 jointly confirmed that all existing 10 teams have committed to the new Concorde Agreement, which covers the next five years of the championship.
“The conclusion of the new Concorde Agreement between the FIA, Formula 1 and all 10 of the current teams assures a stable future for the FIA Formula One World Championship,” said FIA President Jean Todt.
“Over its 70-year history, Formula 1 has developed at a remarkable rate, pushing the boundaries of safety, technology and competition to the absolute limits, and today confirms that an exciting new chapter in that history is about to begin.
“During the unprecedented global challenges currently facing everyone around the world, I am proud of the way that all of Formula 1’s stakeholders have worked together over the past months for the best interests of the sport and the fans to agree the pathway for more sustainable, fair and exciting competition at the pinnacle of motor sport.”
Formula 1 CEO and Chairman Chase Carey added: “This year has been unprecedented for the world and we are proud that Formula 1 has come together in recent months to return to racing in a safe way.
“We said earlier in the year that due to the fluid nature of the pandemic, the Concorde Agreement would take additional time to agree and we are pleased that by August we have been able achieve agreement from all 10 teams on the plans for the long-term future of our sport.
“All our fans want to see closer racing, wheel to wheel action and every team having a chance to get on the podium.
“The new Concorde agreement, in conjunction with the regulations for 2022, will put in place the foundations to make this a reality and create an environment that is both financially fairer and closes the gaps between teams on the race track.”