Ferrari has on all-new engine in the pipeline for 2021 according to team boss Mattia Binotto, and the unit that has so far delivered "promising" results during dyno testing.
Engine power has been Ferrari's weak point all season and the root cause of its dismal 2020 season.
An investigation by the FIA into Ferrari's suspicious engine performance in 2019 led to a controversial secret agreement between the Scuderia and F1's governing body that significantly curtailed the output of the Italian outfit's engine.
As a result, Ferrari's engineers have been working on an entirely new unit for 2021 that should deliver a much-needed boost of performance to the Scuderia.
"We do not have currently the best engine and I think that next year, we may have a completely new power unit, as per the regulations," Binotto said.
"At Ferrari, we have invested a lot in developing further the power unit for 2021, and for 2022. The engine is running currently at the dyno and I think the feedback, in terms of both the performance and reliability, are very promising."
From 2021, Formula 1's regulations will limit a manufacturer's dyno time, but Binotto believes that "efficient and creative" time management will allow for a step forward in development.
"We've got dyno limitations and it’s down to us to be efficient in the way we are planning all the tests on the dynos and being even creative in the way we are approaching the testing," he said.
"But I think that even if we've got some limitations on dyno operations, still there is room for improvement, and I think that, from what I can see today at the dyno, I'm happy with the results."
Ferrari isn't the only manufacturer working on an all-new engine for 2021, with Honda also planning to supply a new unit to Red Bull's teams in its final year in F1.
"We still have seven races to go this season," recently said Honda CEO Takahiro Hachigo. "Next year, we have another season, and then we'll do our very best to try to win.
"For next year we will launch our new power unit so that we can do well together with Red Bull. And we are going to aim for the season championship."