Today, FIA said McLaren-Mercedes Formula One team won’t be sanctioned in the “spy” scandal with their rivals Ferrari. Tough, FIA acknowledged McLaren-Merdes was in possession of confidential Ferrari information and is therefore in breach of article 151c of the International Sporting Code.

"However, there is insufficient evidence that this information was used in such a way as to interfere improperly with the FIA Formula One World Championship. We therefore impose no penalty," the FIA said in a statement after a meeting of its World Motor Sport Council.

But McLaren-Mercedes still could be excluded from this championship if FIA will find new evidence in the case.

"If it is found in the future that the Ferrari information has been used to the detriment of the championship, we reserve the right to invite McLaren-Mercedes back in front of the WMSC where it will face the possibility of exclusion from not only the 2007 championship but also the 2008 championship," the FIA added.

FIA will have to decide the fate of Ferrari head of performance Nigel Stepney and the suspended McLaren-Mercedes chief designer Mike Coughlan who were involved in trading and receiving classified material about Ferrari’s Formula One car design. The FIA said that Stepney and Coughlan will have to appear before FIA over the case.

In a press statement, McLaren-Mercedes announced its satisfaction over FIA’s ruling. "McLaren is delighted that the World Motor Sport Council determined that this information was not used and accordingly imposed no sanction whatsoever on the team. McLaren looks forward to continuing its fight in what is the most exciting Drivers' and Constructors' World Championship in many years.", the statement reads.

Shortly after FIA announced its decision, Ferrari said that they are outraged. “Ferrari notes that Vodafone McLaren Mercedes has been found guilty by the FIA World Council. It therefore finds it incomprehensible that violating the fundamental principle of sporting honesty does not have, as a logical and inevitable consequence, the application of a sanction. Today's decision legitimises dishonest behaviour in Formula 1 and sets a very serious precedent”, Ferrari said.