In a clear sign that the International Automobile Federation (FIA) was not about to give in to the teams' demands after weeks of negotiations over the 2010 regulations, the FIA president presented a simple choice.
"I say (to them): If you want to formulate your own rules, then you can organise your own championship—assuming the rules satisfy the safety requirements," he told Swiss weekly Motorsport Aktuell.
"But we have the Formula One world championship and we make the rules for that," he added in an interview conducted at a Formula Two race in Valencia last weekend.
"We've been doing it for 60 years and we'll continue to do it in the future. Now we have a dispute and we'll see who prevails."
BMW-Sauber boss Mario Theissen told reporters at the Turkish Grand Prix on Thursday that the standoff remained, despite teams submitting conditional entries by a May 29 deadline.
"I said after the meeting in Monaco that the situation is difficult, it is critical and it is not solved yet. And the same applies today," he added.
"I can only say we are waiting for a reply and a response from the FIA...we are now really committed to finding a solution with the FIA to go forward together."
Budget Cap
The FIA plans to introduce an optional 40 million pound ($65.10 million) budget cap next season to keep teams in the sport and encourage new ones to enter at a time of global recession.
The Formula One Teams Association, chaired by Ferrari president Luca di Montezemolo, has said the plan would create an unacceptable two-tier championship.
Champions Ferrari, the Italian glamour team with an unbroken 60-year record in Formula One, are among those threatening to quit if the regulations are not scrapped.
While former champions Williams have submitted an unconditional entry, and been suspended from FOTA, the other nine current teams registered conditionally.
Theissen said that had been suggested by Mosley himself at a meeting in Monaco.
The FIA is due to publish its entry list on June 12.
The standoff has been complicated by at least 10 applications from teams eager to enter Formula One under the proposed budget cap.
They include familiar names from the sport's past such as Lola, Brabham and March as well as a Kuwaiti-financed Prodrive team that could eventually compete as Aston Martin.
The FIA has said that there would be space for three new teams if all 10 existing ones stayed.
