LONDON — Formula One's governing body is sticking to its plans for a budget cap to avoid a "financial arms race," despite threats from key teams to pull out of the sport if the plan is implemented.

Ferrari and other teams say they will withdraw from competition unless plans for a voluntary $60 million budget cap are scrapped.

All 10 current entrants were announced in the 2010 lineup by the FIA last week, despite an ongoing rift between them and the Formula One Teams Association

FOTA financial experts met Monday with their FIA counterparts, but said they were not mandated to discuss the planned financial regulations.

"Indeed, they were not prepared to discuss regulation at all," FIA said Tuesday. "As a result, the meeting could not achieve its purpose of comparing the FIA's rules with the FOTA proposals with a view to finding a common position.

"In default of a proper dialogue, the FOTA financial proposals were discussed but it became clear that these would not be capable of limiting the expenditure of a team which had the resources to outspend its competitors. Another financial arms race would then be inevitable. The FIA financial regulations therefore remain as published."

FOTA had submitted a joint conditional bid to compete next season, but the FIA still listed Ferrari, Red Bull and Toro Rosso as having filed unconditional entries. Five other teams — McLaren, Renault, Brawn GP, BMW Sauber and Toyota — were given a week to submit unconditional entries for next season or risk losing their places.

If FOTA and the FIA are unable to reach any agreement over the next few days, the latter has confirmed more new entrants will be named to make up the 13-team, 26-car grid for next season.

The three new entrants next season are Campos Grand Prix of Spain, Britain-based Manor and American team US F1.