McLaren and Ferrari have buried the hatchet after the spy controvery that rocked Formula 1, the rival teams said.

McLaren were fined a sporting record 100million euros and stripped of all constructors' points for the 2007 season by the World Motor Sport Council after being found guilty of fraudulent conduct 10 months ago.

Their crime was being found in possession of a confidential 780-page document belonging to Ferrari, who appeared determined to seek recompense in court.

But the two teams released statements on Friday that made it clear they are ready to let the matter drop, although Ferrari will continue their seperate legal action against Nigel Stepney, a former employee who is alleged to have handed over the information to McLaren's former chief designer Mike Coughlan.

The McLaren statement read: "In light of the formal closure in December 2007 of the FIA and FIA World Motor Sport Council proceedings against McLaren, and of McLaren's public apology to Ferrari which we have reiterated, Ferrari and McLaren have agreed to bring the various disputes between them in relation to this matter to a final conclusion.

"McLaren has also agreed to the reimbursement of Ferrari's costs and expenses relating to these matters and a concluding payment."

Ferrari's response said: "Ferrari acknowledges McLaren's reiterated apology for the well-known events which occurred during the 2007 F1 Championship.

"In the best interests of Formula 1 and taking into account the formal closure in December 2007 of the FIA and FIA World Motor Sport Council proceedings against McLaren, it confirms that it has accepted to put an end to all outstanding controversies between the two teams.

"Ferrari will donate to charity the concluding payment received from McLaren."

AFP