Turkish officials announced that F1 supremo Bernie Ecclestone had written to them outlining his decision to allow Istanbul to stage a Turkish Grand Prix.
Ecclestone's letter read: "I have decided upon Istanbul. Now we need to finalize the commercial issues and the TV rights."
Istanbul was chosen ahead of rival Turkish venues in Izmir and Antalya.
A contract for the race has however yet to be signed and the FIA, Formula One's governing body, would not confirm that Istanbul had been selected.
German architect Hermann Tilke, who designed the track at Sepang in Malaysia, is expected to complete his plans by March for the Istanbul track.
Istanbul would be the latest city to win the right to enter F1 following the decision to award races to Shanghai and Bahrain in 2004. F1 is looking to boost its appeal following a year in which both attendances and TV audiences have dropped.
The inclusion of Istanbul, Shanghai and Bahrain on the F1 circuit over the next few years will see some of the more established race venues make way. The Belgium Grand Prix at Spa has already been axed due principally to its refusal to allow tobacco advertising in accordance with the country's laws.
For a full status report on the current situation facing Formula One, see the next issue of SportBusiness International - a motorsports special.
Istanbul has been awarded a Formula One race in 2005 according to Turkey's motor sports federation.
