JEREZ DE LA FRONTERA, SPAIN - Spain's double world champion Fernando Alonso on Wednesday predicted Formula One would find a way to cut costs so that no more teams follow Honda's 'surprise' pullout.

"All the teams now agree to have a reduction in costs, to find a solution, to spend less money, and I'm sure they will find it," he said.

"There are plenty of solutions to reduce the budget of teams without reaching the point of leaving Formula One," the Spaniard told reporters during Formula One testing at the circuit in Jerez de la Frontera, southern Spain.

Honda on Friday announced its shock withdrawal from Formula One raising fresh fears over the future of the multi-million dollar sport struggling to keep afloat in the current economic downturn.

The decision shocked the sport, which had already seen backmarkers, and fellow Japanese team, Super Aguri go the wall earlier this year.

"It's a shame and it was a surprise for me and most of the people in the paddock because Honda has been in Formula One for a long time and is one of the biggest teams as well," said Alonso.

"I think it was not an easy decision for them to make and hopefully no more teams will follow their decisions," added the Renault driver.

World motorsport chief Max Mosley earlier on Wednesday called for Formula One engineers to innovate or else risk seeing the business decay.

"Success in Formula One today consists of optimising each little bit of the chassis, which is ever more costly and completely absurd," Mosley said in addressing the opening day of the Motor Sport Business Forum in Monaco.

Mosley last week revealed proposals for a standard and cheaper engine that could be used by Formula One cars.