Valencia, Spain:Valencia will stage the European Grand Prix starting next year after Formula One chief Bernie Ecclestone signed a seven-year contract with event organisers on Friday.
Ecclestone signed the agreement with Valmor Sport, which owns the rights to organise the street circuit race. The regional government has a 25 per cent stake in the private business.
"Today is a very important day for the future of the Valencia region, one in which we are all part of the same journey and effort. It guarantees our presence throughout the world," said Valencia regional President Francisco Camps, who signed the agreement with Ecclestone in London.
The agreement to bring a second F1 race to Spain - after the Spanish GP in Barcelona - was originally announced on May 10. Ecclestone said at the time that the contract would only be signed once the outcome of the regional and municipal elections were confirmed.
Camps and Valencia Mayor Rita Barbera - who are both in the opposition Popular Party and spent two years negotiating the agreement with Ecclestone - were re-elected on May 27.
Reports said Valmor would pay $35.17 million annually to Ecclestone for the rights to stage the race, an event previously held in Nuerburgring, Germany. The Valencia race is likely to be held in August.
The street circuit, designed by German racetrack architect Hermann Tilke, will be based around Valencia's port, which is currently staging the America's Cup sailing event.