Formula One reaches engines deal

Formula One bosses have reached a deal to make engines cheaper and more standardised from next season, helping smaller teams, the FIA says.

The agreement on power units - the combination of turbocharged engines and a hybrid energy recovery system - also contains an "obligation to supply" provision to stop teams being left without a power unit supplier.

However, that provision would not appear to apply in cases such as that of Red Bull last year, when the team tried to leave a contract with Renault but was unable to find an alternative.

The FIA said in a statement on Friday that teams will pay 1 million euros ($A1.5 million) less for next season and 3 million euros ($A4.5 million) less in 2018 when buying from the four manufacturers, Mercedes, Ferrari, Renault and Honda.

The FIA added that "a package of measures aimed at achieving performance convergence" will mean the scrapping of the controversial token system allowing each supplier a certain number of power unit updates each season, plus new restrictions on turbo boost and various engine parts.

The deal also affects the sound of the engines, which has been criticised since the 1.6-litre turbo engines were introduced in 2014.

"Manufacturers are currently conducting a promising research program into further improving the sound of the current power units, with the aim of implementation by 2018 at the latest," the FIA said.

The agreement has the blessing of "all levels of the F1 governance structure", the FIA added.