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Formula 1: International Automobile Federation Signes Deal with Ferrari

The International Automobile Federation has signed a deal with Ferrari's Formula One team, a move that could end the hopes of a rival circuit set to launch in 2008.

FIA, Formula One's world governing body, said Ferrari had agreed to prolong the Concorde Agreement that covers Formula One teams. Because Ferrari is the richest and most successful team in recent years in Formula One, the agreement could end the hopes of a breakaway circuit - the Grand Prix World Championship - that Ferrari co-owns with Mecedes, Renault, and BMW.

The deal also boosts Formula One Management supremo Bernie Ecclestone's chances of retaining control of Formula One. Teams wanted a biggest share of Formula One's revenues and more say in how the sport is governed. Currently, Ecclestone and his holding companies receive most of the profits from commercial rights generated by Formula One.

Some information for this report provided by AFP and AP.