The Victorian government has signed a deal to make Melbourne the host of the Australian Formula One Grand Prix until 2020, but won't say how much it will cost the state.
Premier Denis Napthine announced a five-year deal for the city to continue to host the event from 2016, including clauses to keep Melbourne as the inaugural Grand Prix of the season and for the race to be staged during the day.
Dr Napthine would not be drawn on the amount the government was paying to host the event because of "commercial in confidence" issues, but said it represented better value than the previous deal.
"We are investing money in the Grand Prix that is returned many fold over," he told reporters on Sunday.
Dr Napthine said the government would release details of the cost paid for the race in the months after it is held.
He said the state took a hard line during negotiations, and came close to losing the race to a rival city.
"There is enormous competition to have Grands Prix as major events around the world," he said.
"I can tell you there was a small city just up the road in another state that was very keen to get the Grand Prix."
Formula One boss Bernie Ecclestone said Melbourne was a natural host for the event.
"I congratulate Melbourne for the excellent way in which it presents Formula One to the world," he said in a statement.
Melbourne has hosted the Australian Grand Prix since 1996, after the state poached the race from Adelaide.
Victoria paid $50.67 million to host the event last year, down from $56.66 million in 2012.
Dr Napthine said the Grand Prix generates between 351 and 411 full-time equivalent jobs and up to $80 million of economic benefits for the state.
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