Mattia Binotto says Ferrari's new engine for 2021 and 2022 is looking "very promising".
The Maranello team has struggled with its 2020 power unit in the wake of last year's legality saga.
"Currently, we don't have the best engine but next year we can have a completely new one," he said.
"At Ferrari we have invested a lot in developing the engine for 2021 and 2022. It is now on the dynamometer and I think that the feedback in terms of performance and reliability is very promising.
"We have limitations regarding the dynamometer for 2021 so it is up to us to be efficient and creative in the way that we are planning the tests.
"But I think that although we have limitations on our operations, and there is room for improvement, from what I can see today, I am happy with the results," Binotto added.
