Formula One teams and the sport's governing body, the FIA, say they have made "small progress" in talks over the controversial $100 million budget cap.
Team bosses met with Max Mosley on Friday having earlier united in their opposition to the cap proposed for 2010 by the FIA president.
The teams said they may pull out of F1 altogether if the row is not resolved.
But discussions will now continue in Monaco after a meeting that Mosley described as "constructive".
Mosley, who says a budget cap is necessary to safeguard the future of the sport in the global financial crisis, said he felt optimistic following the meeting.
While no agreement was reached between the two parties on Friday, the F1 teams' umbrella group, Formula One Teams' Association (Fota), was successful in agreeing a common position from which to negotiate with Mosley.
Mosley argues that without dramatic cost reductions, smaller teams wishing to enter F1 will not able to afford it and that, additionally, big road-manufacturers may be forced to pull out of the sport.
But Ferrari, the longest-running team in F1, had threatened to quit anyway - along with Toyota, Red Bull and Renault - if the regulation changes were enforced in 2010 as planned.
And all 10 teams now say they want a compromise on the budget cap plans.
Fota chairman and Ferrari president, Luca di Montezemelo said the meeting had been productive.
