The specialist German magazine Auto Motor und Sport reports on Tuesday that a deal has now been struck between the FIA president and the carmakers, who are unhappy with the current 'engine freeze' formula.
The new formula will reportedly involve 675 horse power V8 engines featuring an energy-recovery system that reuses energy stored under braking in the form of a cockpit-mounted 'boost button'.
Mosley reportedly also wants to extend the current one-engine-per-two-races engine formula to four races, in exchange for allowing the carmakers to freely introduce an engine development step once per season.
The small teams will benefit from the agreement by receiving guaranteed customer engine supplies for no more than €10m a year.
F1 chief executive Ecclestone, however, is quoted as objecting to the idea of hybrid engines for Grand Prix racing.
"I believe we are already green enough," the 76-year-old said, adding that he also doubts that hybrids "will make the manufacturers happy".