World motorsport’s governing body, the FIA, and its commercial arm run by Bernie Ecclestone, the Formula One Group, on Friday signed a new agreement for the next seven years.

The so-called Concorde Agreement, which runs from 2013-20, is a contract first introduced in 1981 to oversee how Formula One is managed and its revenues distributed.

“This agreement provides the FIA with significantly improved financial means to pursue its regulatory missions and to reflect the enhanced role undertaken by the FIA in Motor Sport,” FIA said in a statement.

“The parties have agreed a strong and stable sporting governance framework which includes the Formula 1 Group, the FIA and the participating teams. The agreement lays down solid foundations for the further development of the FIA Formula One World Championship.”

The Concorde Agreement, the last one of which lapsed at the end of 2012, now needs to be ratified by the 11 race teams to become operational.

FIA president Jean Todt said: “We can be proud of this agreement, which establishes a more effective framework for the governance of the FIA Formula One World Championship.

“The FIA looks forward to continuing to fulfill its historic role as the guarantor of both regulation and safety in F1 for many years to come.”

Ecclestone, CEO of the Formula One Group, added: “I am very pleased that the agreement between the FIA and the Formula 1 Group has been concluded.”