The engine Formula 1 will race with from 2021 and the first move towards a budget cap in 2019 are set to be announced at the end of the month, according to Germany's Auto Motor und Sport.

Talks have been underway for several months now regarding changes to the current power units with the goal of making them cheaper, simpler and louder the main priority of F1 bosses.

The FIA, Formula One Group and manufacturers both current and potential have been working on the proposal with initial suggestions of a twin-turbo V6 with a KERS system, albeit much larger than that introduced in 2009.

Several notable names have been involved in the discussions include Porsche and Aston Martin while former V8 supplier Cosworth went as far as suggesting they already had verbal agreements with some teams over a 2021 return.

The main sticking point on the matter has been the level of electrification with the big manufacturers keen to maintain the hybrid format. Although it is thought the MGU-H, introduced alongside what is now called the MGU-K and formerly KERS, could well be dropped due to the cost, complexity and how it muffles the sound.   

Also mentioned is the first effort at a budget cap, something that has long been considered in F1. This would work along with efforts to standardise non-important parts to reduce the vast gap between the $250m+ teams like Mercedes and Ferrari are spending compared to less than $100m at Sauber.   

Team bosses were seen meeting in Malaysia with murmurings of a figure around $150m being suggested, however, as has been the constant argument, measures to enforce a budget cap would need to be considered.

Other possible changes could see the dissolving of both the Strategy Group, a body made up of key teams, the FIA and F1 bosses to determine future regulation changes, as well as the F1 Commission, this as motorsport director Ross Brawn builds his own team of engineers to develop future rules.