The target is to slash the budget of a top team from the present average of $360million to $120million.
Max Mosley, the FIA president, said the sum "is still a vast amount of money when compared to any other form of motor racing".
The governing body will open the entry list for the 2008 World Championship on March 1, 2006, giving teams time to build and prepare cars and infrastructure.
Mosley also warned manufacturers that they should abandon thoughts of a breakaway contest if they want to remain in F1. "If some of the manufacturers wish to run a private series with unlimited expenditure, the FIA would give them every assistance. It would be an interesting experiment, but too risky for the Formula One World Championship."
He is also concerned that teams have not yet come up with any concrete proposals to cut costs.
The FIA hopes the 2008 championship will see "realistic" budgets and closer races, as well as the addition of two more teams.
