Australia is to host a round of the A1 Grand Prix series, at the Gold Coast, for the next five years.
Queensland state premier Anna Bligh said that the government had reached an agreement with organisers. "The A1GP is a world-class racing series with an action packed race calendar that includes Great Britain, China, Mexico, Portugal, Malaysia, New Zealand, Indonesia, South Africa and the Netherlands," Bligh said.
The agreement with A1GP came as the region was forced to scrap its annual Indy car race after failing to reach an agreement with organisers about what time of year to hold the race. Queensland's Gold Coast normally holds an Indy race in October, but Indy officials reportedly wanted to switch to March, at the same time as the Australian Formula One Grand Prix in Melbourne and the start of the Australian football seasons.
Queensland state Sports Minister Judy Spence told local reporters: "They have an expanded series of events and our Indy clashes with the early part of the American Football season. But moving our race to March as they had requested was not an option."
