Formula One appears to be closing in on an agreement in the budget cap row ahead of the crucial announcement of the entrants for 2010.

The Formula One Teams' Association have responded to a letter from FIA president Max Mosley after he urged them to submit an unconditional entry for next year.

Mosley made it clear if they did so, he would sit down with all the confirmed entrants and listen to their proposals with regard to shaping the rules for 2010. The teams are against plans for a voluntary £40million limit, which they claim could lead to a two-tier championship.

A FIA spokesperson said: "The FIA has received a letter from FOTA, the contents of which are not entirely negative and we are currently examining the details."

The eight remaining members of FOTA - Ferrari, BMW Sauber, Renault, Toyota, McLaren, Red Bull Racing, Toro Rosso and Brawn GP - are moving in the right direction. Initially, all 10 teams submitted a conditional entry, only for Williams and Force India to since enter unconditionally due to contractual obligations.

Meanwhile, Michael Schumacher and Sebastian Vettel will again represent Germany at the Race of Champions. The duo will bid to retain their title at the Bird's Nest stadium in Beijing on 3-4 November having twice been successful at Wembley.