Ferrari won't be appealing against the five second penalty handed to Sebastian Vettel which saw him lose Sunday's Canadian Formula One Grand Prix.

The German was demoted to second behind Lewis Hamilton after he was punished for rejoining the track in an unsafe fashion.

Vettel now trails defending champion Hamilton by 62 points in the championship standings and Ferrari had lodged their intention to challenge the stewards' controversial verdict following the race.

He had gone off at the track on lap-48 at Montreal's Circuit Gilles Villeneuve and forced Hamilton to slam on the breaks when rejoining the road at the exit of the corner.

The Mercedes driver labeled his rival's behaviour as dangerous and it was decided that the German had breached the FIA's sporting code.

"Manoeuvres liable to hinder other drivers, such as deliberate crowding of a car beyond the edge of the track or any other abnormal change of direction, are strictly prohibited."

"It is not permitted to drive any car unnecessarily slowly, erratically or in a manner deemed potentially dangerous to other drivers at any time."

Vettel, who hasn't won a race since the 2018 Belgian Grand Prix, protested his innocence and called the stewards "blind" following the decision to reverse the top two places on the podium.

But former world champion Nico Rosberg thinks the decision was correct.

"Vettel went all the way across the track, and he could easily have left more space for Lewis. He left hardly any room.

"Lewis cannot be blamed for anything. He had to back out of it. He would have been in the wall if he had stayed there. It is very clear it was an unsafe return to the track. It was a fully deserved penalty."

Ferrari have until 10pm tonight to formally give notice that they're withdrawing the appeal though the team will retain their 'right of review' which enables them to question the verdict if significant new evidence is discovered.