The FIA hopes the introduction of cheaper and noisier power units from 2021 will help keep Formula One as the pinnacle of motor sport technology.
Current F1 regulations revolve around fuel economy limitations and conserving power, leading to some criticism of the 1.6-litre V6 turbo hybrid engines.
One main critique has centred around the noise emitted from the back of the cars on the grid despite exhaust tweaks to extract more sound.
Under new plans the improved engine noise would satisfy those critics, while also allowing manufacturers to produce more powerful units using simpler and cheaper processes.
At a meeting in Paris on Friday - chaired by FIA president Jean Todt - representatives from F1's new owners Liberty Media and all four current suppliers discussed a raft of changes, with potential future manufacturers also in attendance.
The proposed new regulations - which will continue to be fine-tuned - should allow drivers to "drive harder at all times" and lead to more entertaining races for the viewing public.
"I was very pleased with the process, and the fact that so many different stakeholders were able to agree on a direction for the FIA Formula One World Championship in such an important technical area," said Todt.
"Of course, now we must sit down and work through the fine details of exactly what the 2021 power units will be - but we have begun on the right foot, and I am looking forward to working through the process to come up with the best decision for Formula One into the future."
F1 will continue to use the current specification for power units until the 2020 season, with 2021 the earliest any changes can be implemented.