Bernie Ecclestone has delivered a fresh twist to the dispute between the FIA and the formula one teams by saying that both sides are agreed that, while a budget cap to limit excessive expenditure is acceptable, the proposed two-tier technical regulations for 2010 should not be implemented.

Ecclestone, the formula one commercial rights holder, made his comments to the BBC after Friday's lengthy meeting between the teams and the governing body had broken up without agreement and Ferrari said they would be suing the FIA in the French courts for illegally changing the rules. However, Ecclestone believes there will be no problems reconciling the two sides as long as only the budget cap remains in place to limit spending.

The two-tier regulations emerged as a result of the FIA's wish to attract new teams into the championship by offering them a set of rules which provided extra performance in exchange for their signing up to the budget cap.

"I think the most important thing that upset everybody, [which] they did not like, was this two-tier technical system, so I think it has been agreed that we should not have that," said Ecclestone. "The two-tier system is out of the window. I always thought that was a bit stupid. It was important to get rid of it. There has been an agreement in principle. Everyone will have the same regulations.

"I think everybody is more or less happy with the budget cap, although just how much? They will go with it higher, maybe it will be lower. It's just a case of sorting it out. I am confident all the teams will still be racing next year."

Sir Frank Williams echoed Ecclestone's sentiments in as much as being confident that what has been a serious sticking point regarding the future of formula one is close to an amicable resolution. "We still have work to do among ourselves," said Williams, "but I can't see anyone not being prepared to race next year."

Further meetings to resolve formally the apparent impasse between the teams and the FIA are scheduled for later this week in Monte Carlo, before Sunday's Monaco grand prix. Britain's Jenson Button, who officially resides in Monaco, leads the drivers' championship on 41 points after five races.

I always thought that was a bit stupid.