Ferrari pledge to continue in F1

Ferrari have ruled themselves out of a breakaway series in 2008 and are now committed to Formula One until 2012.

Their signing of an extension to the Concorde Agreement, which governs the running of the sport, undermines any moves by other F1 teams to set up a rival series.

Four manufacturers - Ferrari, DaimlerChrysler (Mercedes), Renault and BMW (Williams) - were using the threat of the Grand Prix World Championship (GPWC) to get a better deal from F1 impresario Bernie Ecclestone.

Ecclestone expressed his joy at Ferrari’s actions - it has long been accepted that whichever side grand prix racing’s most successful and prestigious team took would hold all the aces in the bargaining stakes.

He also said that all the teams would be getting more money and a greater say in the running of the sport should they also sign the new agreement.

Ecclestone said he was offering the teams an extra £267million over the next three years.