Max Mosley will continue as FIA president having rescinded his previous decision to stand down.
Mosley has pushed through a number of changes to Formula One
Mosley felt compelled to stay on after an FIA Senate meeting gave a unanimous call for him not to stand down.
Mosley will remain in office until at least October 2005 and a statement read: "He feels bound to accede to the Senate's request.
"He expressed his thanks for the confidence shown in him both the Senate and the full membership of the FIA."
The 64-year-old has driven through a swathe of changes to Formula One in the face of opposition from many teams, who claimed they were a knee-jerk reaction to slumping TV ratings in the wake of Michael Schumacher's success at Ferrari.
Further reforms agreed in May for the 2008 season will see a new engine format, a single tyre supplier and a ban on electronic driver aids.
Mosley says the changes will ensure closer racing and more overtaking.