Formula One is to finally introduce a long-discussed budget cap from the 2015 season that could prevent teams from going to the wall.

The crucial move comes following a meeting in Paris on Monday of the F1 Strategy Group and the Formula One Commission.

A statement from the FIA read: "The principle of a global cost cap has been adopted. The limit will be applied from January 2015.

"A working group will be established within the coming days comprising the FIA, representatives of the commercial rights holder (Bernie Ecclestone) and team representatives.

"The objective of the working group will be to have regulations approved by the end of June 2014."

The decision comes as a major surprise, although is much needed as costs have been spiralling out of control over the past few years.

At the height of the global credit crisis a few years ago, and in the wake of the withdrawals of major manufacturers Honda, Toyota and BMW, former president Max Mosley attempted to introduce a budget cap.

An initial £30million figure was raised to £40million, however, the decision caused such division with the teams that a breakaway series was threatened, but ultimately came to nothing.

Although three new teams entered on the basis the cap would be put in place, such a proposal eventually fell by the wayside as plans to police it could not be agreed upon.