The FIA is expected to implement new rules, which seek to regulate engines, at the start of the 2018 season.
Media reports reveal that a consensus was reached between the FIA and F1 manufacturers during a meeting in Geneva on Tuesday, when proposals guaranteeing supply for all teams were put forward. Indications are that the cost to customers will be significantly reduced.
In addition, the number of gearboxes allowed for the season have also been reduced, as a part of the cost cutting initiative.
Craig Slater from Sky Sports reports that this was a positive development for Formula 1.
"This has been a positive meeting and it has finished on a note of consensus. One of the key things was power unit supply which caused chaos last year with Red Bull struggling to get an engine for this year," said Slater.
"What has been agreed is that all teams must be supplied, there will be a guarantee for all the entrants that they will take delivery of some kind of power unit.
"The manufacturers are also going to break down the costs for the supplies to customer teams to almost as low as the £12m per team that the FIA wanted. In exchange for that these manufacturers will be rewarded with keeping this current generation of unit, so they will see the benefit of the £300 or £400m spent developing these engines," added Slater.