Formula 1 owners Liberty Media have scored a key victory over the notoriously powerful manufacturers regarding the engine regulations for 2021.

With a new commercial rights deal set to come into effect that year, the sport's new bosses, headed by CEO Chase Carey, are hoping to use to opportunity to overhaul much of the current financial, governance and sporting structure.

However, attempts to make the current V6 turbo hybrid power unit cheaper, simpler and louder have been met with the great resistance, particularly from Mercedes and Ferrari who threatened to quit F1 if they didn't agree with the direction taken.

Now it seems a final agreement is close though after both those teams bowed to pressure on a big demand Liberty chiefs had.

“We have given up on some of the standpoints, we have accepted to lose the MGU-H,” Mercedes motorsport boss Toto Wolff told RaceFans after a meeting in Monaco on Friday.

“We think [dropping] the technology is a step backwards, but in terms of achieving compromise for the benefit of the spectacle the H going [means] the revs going up, the fuel limitations going, I think we will have a louder engine, [and] we will not be limited by fuel.

“It’s not the most sustainable message we’re sending out but we can understand it from a spectacle standpoint. It is something you need to consider and accept.”

The MGU-H was introduced alongside the MGU-K (formerly known as KERS) in 2014 and works by collecting heat from the exhaust gases around the turbocharger and converting it into electrical energy which is then stored in the battery.

However, while a major technical innovation, the complexity, cost and impact it has on reducing the engine noise meant its removal was a key aim of Liberty and those manufacturers considering returning as suppliers, notably Aston Martin and Porsche.

Because it is a deviation away from the push for efficiency and sustainability that companies like Mercedes want, however, Wolff admits he got a little heated during the talks.

“I had a bit of a moment in the Strategy Group where I needed to speak to my anger management psychologist when we talked about getting rid of all fuel flow limitations that we have, all fuel allowances and just completely open it up from the get-go now," the Austrian said.

"I think we cannot close our eyes to what’s going on in the world. Hybrid energy recovery systems happen on roads cars, they need to happen in F1 in my opinion.

“But equally we have to understand what the fan is interested in," he conceded. "And I think it needs the technology message but it needs to be at a level where we recognise that spectacle is important and shocking your senses with an engine sound is maybe something that we can improve.”

Small details are now believed to be the only hurdle between teams and F1 bosses before a final agreement is reached, one it is hoped that will come before the end of June.