McLaren have been stripped of their points in the 2007 Formula One constructors' championship after the outcome of the "spygate" row.
McLaren chief Ron Dennis (centre) was beseiged by the media in Paris
The team were also fined a record $100m (£49.2m), which includes any prize and television money they would have earned from the constructors' championship.
But drivers Lewis Hamilton and Fernando Alonso can keep their points.
The team must also prove there is no Ferrari "intellectual property" in their cars next year before racing.
The decision means Ferrari, who go into this weekend's Belgian Grand Prix second in the constructors' championship, 57 points ahead of third-placed BMW Sauber, are almost certain to be crowned champions.
Having been at the hearing I do not accept that we deserve to be penalised or our reputation damaged in this way
The row centres on McLaren being in possession of a confidential 780-page technical document belonging to Ferrari.
When he left the hearing, FIA president Max Mosley was asked if justice had been done, and replied "Yes".
A Ferrari statement said: "In light of new evidence, facts and behaviour of an extremely serious nature and grossly prejudicial to the interest of the sport have been further demonstrated.
"Ferrari is satisfied that the truth has now emerged."
The World Motor Sport Council said it would publish the reasoning behind its verdict on Friday.
And McLaren team chief Ron Dennis said he would wait until then before deciding whether to appeal.
"We believe we have grounds for appeal but of course we are going to wait for the findings of the FIA which are going to be published," Dennis explained.
"The most important thing is that we go motor racing this weekend, the rest of the season and next season."
Although he was clearly relieved that the team could continue racing, Dennis was understandably upset at what he saw as the besmirching of the team name.
"Having been at the hearing I do not accept that we deserve to be penalised or our reputation damaged in this way," he said.
"Today's evidence given to the FIA by our drivers, engineers and staff clearly demonstrated we did not use any leaked information to gain a competitive advantage.
"The WMSC received statements from Fernando Alonso, Lewis Hamilton and Pedro de la Rosa stating categorically no Ferrari information had been used by McLaren, and that no confidential data had been passed to the team.
"The entire engineering team in excess of 140 people provided statements to the FIA affirming they had never received or used the Ferrari information.
"We have never denied that the information from Ferrari was in the personal possession of one of our employees at his home.
Lewis Hamilton and team-mate Fernando Alonso keep their points
"The issue is: was this information used by McLaren? This is not the case and has not been proven."
At the first hearing into the row, on 26 July, McLaren got off without punishment, but another hearing was convened after new evidence emerged, and that led to the points deduction and huge financial penalty.
Three-time world champion Sir Jackie Stewart believes there is more information to be made public.
"All I can say, without being in full command of all of the information, is that the offence must be considerably larger than has been projected either by the governing body of the sport or within the media," he told BBC Radio 5live.
"This isn't murder that has been carried out, this is something that has happened before and there wasn't even a fine or disciplinary action taken by the same governing body.
"There is something very strange going on, there is no doubt about that.
"From what information we have been given so far, this does not constitute a penalty of this scale with regards to the crime that has been carried out.
"And even if they were found guilty of that particular crime, it doesn't justify this kind of penalty."