Formula One's governing body is proceeding as planned with a budget cap for 2010 and Ferrari [ Images ] are taking legal action in France [ Images ] to try to stop them, FIA president Max Mosley said on Friday.
Despite an apparent impasse after talks between the teams and governing body at London's [ Images ] Heathrow airport, Mosley doubted the champions would carry out their threat to walk away at the end of the season.
He said the May 29 deadline for teams to enter the championship remains in force and the FIA hoped all the teams, who he said have "gone off to reconsider", would race under the same regulations rather than in a two-tier series.
Mosley made clear the Ferrari legal action has complicated matters, however.
"When people start bringing proceedings it gets very difficult to negotiate with them," he told reporters after what he described as a "lively" two-hour meeting.
He said the Italian team's application for an injunction, which he heard about through a text from his lawyer, was "to stop us doing what we want to do". It will be heard by a Paris court next Tuesday before the showcase Monaco Grand Prix [ Images ].
The FIA governing body has its headquarters in Paris and Ferrari, who enjoy special privileges as Formula One's oldest and most successful team, will claim they are unable to exercise their right to veto the regulations.
Mosley said the FIA would appeal if the court ruled in Ferrari's favour.
Ferrari president Luca di Montezemolo did not attend Friday's meeting after the death of his father on Thursday and the champions were represented instead by team boss Stefano Domenicali.
The FIA want an optional 40 million pounds ($60.50 million) cost cap, offering greater technical freedom than available to those teams staying on unrestricted budgets, that they say is needed for the sport's survival in the face of the global financial crisis.
Ferrari, and former champions Renault [ Images ], say that will lead to a two-tier championship that they cannot accept and have both threatened to leave.
Toyota [ Images ] and Red Bull's two teams have also said they cannot submit their entries by the May 29 deadline for the same reasons.
Formula One needs Ferrari but the Italian glamour team also need the sport, something that commercial supremo Bernie Ecclestone [ Images ] has been at pains to point out.