Force India have announced that their Italian driver Giancarlo Fisichella is joining Ferrari with immediate effect.

The team also insisted that there was no financial settlement involved in his move.

After four days of vehement denial, Force India chairman Vijay Mallya said that following extensive discussions over the past 24 hours, the outfit agreed to release Fisichella with "immediate effect" from his contract to join Ferrari for the remainder of 2009 season

"Giancarlo and his management team approached me yesterday (Wednesday) with a proposal from Ferrari. For any Italian driver, a Ferrari race seat is a long-held dream and for Giancarlo it was no exception. No one should stand in his way.

"Furthermore the agreement will secure Giancarlo's long-term future with Ferrari and it would be incorrect to jeopardise this, particularly when Giancarlo has made such a vital contribution to Force India," he said.

He said the team would soon name Fisichella's replacement though test driver Tonio Liuzzi is tipped for the vacant slot.

Since Fisichella finished second in Belgian Grand Prix, Formula One paddock was abuzz with reports of his move to Ferrari but both the driver and Mallya himself had denied the reports, calling them 'media rumours'.

There were reports that Force India owed money to Ferrari for using their engine last season and Fisichella's move would wipe out the debt but Mallya insisted there was no financial consideration involved.

"We would like to stress that we have not accepted any financial settlement from Ferrari. This agreement has been made in good faith and for the good of Giancarlo and the sport in general. A competitive Italian driver in a Ferrari for Monza is a positive story for Formula One, which can only help raise the sport's profile in these difficult times," Mallya said.

"We would like to thank Giancarlo for all his help over the past one and a half seasons and for delivering us our first World Championship points last weekend. He has been an integral part of the team and we owe him a great deal for his input behind the scenes and performance out on track. We wish him all the best for the future," he added.

Mallya also dismissed suggestions that Fisichella's exit would weaken the outfit which tasted its first Formula One points in Belgium, courtesy Fisichella's second place finish.

"For Force India, this sport is a team effort and removing one part, even a major one, will not significantly affect our performance. The competitiveness of the team seen in Belgium was a result of hard work in the factory and wind tunnel and we have further developments coming for the final races, so we are confident this momentum can be sustained. We are now looking forward to a strong finish to the season," he said.

Fisichella was keen to join Ferrari, something he had told reporters in Belgium.

The driver thanked the Force India management for letting him go and wished them success.

"I am very grateful to Vijay Mallya for allowing me this opportunity to drive for Ferrari team. It is true that it has always been an ambition to do this, and for Vijay to have allowed it to become a reality is very generous.

"I hope in my turn I have helped Force India grow up and be on the right path to achieve their own ambitions. They are now a very competitive team and I wish them all the very best," Fisichella said in a statement.