Lewis Hamilton's Formula One world title dream is still alive, even though McLaren were severely punished by the World Motor Sport Council yesterday.

Following the emergence of fresh evidence in the spy scandal, McLaren will lose all their constructors points for this season, while they have been hit in the pocket with a record fine of 100 million dollars (£49.2million).

However, Hamilton and reigning world champion team-mate Fernando Alonso - who are just three points apart in this season's championship race with four grands prix remaining - are clear to continue the race for the crown.

Following a ten-hour meeting at the FIA headquarters in Paris a statement read: ''The WMSC have stripped Vodafone McLaren Mercedes of all constructor points in the 2007 FIA Formula One world championship and the team can score no points for the remainder of the season.

''Furthermore, the team will pay a fine equal to US100million, less the FOM (Formula One Management) income lost as a result of the points deduction.

''However, due to the exceptional circumstances in which the FIA gave the team's drivers an immunity in return for providing evidence, there is no penalty in regard to drivers' points.

''The WMSC will receive a full technical report on the 2008 McLaren car and will take a decision at the December 2007 meeting after what sanction, if any, will be imposed on the team for the 2008 season.''

Team boss Ron Dennis left the marathon hearing in sombre mood following the remarkable sanctions meted out to his team.

McLaren were found guilty at an initial hearing on July 26, although no penalty was imposed due to what the council described as ''insufficient evidence''.

Suspended chief designer Mike Coughlan was found to be in possession of 780 pages of Ferrari technical information, stored on computer disks at his home.

However, at that stage there was no evidence to suggest the dossier had been used with regard to this year's McLaren car.

McLaren also pointed out Coughlan was a rogue employee working to further his career ambitions in conjunction with Nigel Stepney, sacked as Ferrari's head of performance development.

But since the July hearing other evidence materialised resulting in yesterday's meeting, at the end of which the council severely penalised McLaren.

It remains to be seen whether the team will appeal given this case has already dragged on for three months.

Dennis was supported by Hamilton, the 22-year-old Briton who has taken this year's championship by storm in his debut year.

But now a cloud will hang over any possible success should he go on to become the first driver to win the title in his rookie year.

Dennis later said: ''Normally I like to shoot a little bit from the hip, but I want to put a bit more discipline into what I say.

''So I've taken a little bit of time to collect my thoughts.

"Having been at the hearing I do not accept that we deserve to be penalised or our reputation damaged in this way.

''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.

''Much has been made in the press and at the hearing of emails and text messages to and from our drivers.

''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.

''The issue is: was this information used by McLaren? This is not the case and has not been proven.

''We are also continually asked that if McLaren didn't use the information, what was the reason for Stepney and Coughlan collecting all this data about Ferrari?

''We can only speculate as neither Coughlan nor Stepney gave evidence at today's hearing, but we do know that they were both seeking employment with other teams, as already confirmed by both Honda and Toyota."