Hamburg  - Mercedes has come up with a compromise which could end in the Formula One budget cap row between the teams and the governing body FIA, British daily The Times reported on Thursday.

The Times said that Mercedes motorsport chief Norbert Haug has suggested a two-stage plan to reach the budget cap of around 45 million euros (63 million dollars).

The teams are said to have discussed the plan on the weekend at the Monaco Grand Prix and on Wednesday in London.

"Haug and his colleagues in Stuttgart have come up with a compromise proposal that appears to be flexible and subtle enough to satisfy the teams and Max Mosley, the president of the FIA," said the paper.

"There was optimism last night that a deal could be in place in time for most, if not all of them, to enter next year's championship by the FIA deadline of tomorrow (Friday).

FIA announced a budget cap for the 2010 season, which prompted Ferrari and others to threaten withdrawal from the sport. The official FIA deadline to register teams for 2010 is Friday.

Under the Mercedes plan, teams will be allowed to spend 100 million euros in 2010 and then reach the original cap in 2011.

Haug did not want to confirm his contribution, telling the German Press Agency dpa on Thursday: "It doesn't matter who comes up with the plan as long as it is constructive and solves the problem." (dpa)