Melbourne has secured the Australian Formula One Grand Prix for another five-year spell until 2006, the state government said yesterday. Tourism Minister Louise Asher said Victoria had been able to retain the Albert Park race despite strong interest from South Australia, which held the event in Adelaide for 11 years from 1985.

The arrangement to lock in the race until 2006 will come as a setback to several Asian countries such as China, Indonesia and Malaysia who were hoping to win a round of the World Championship. It is understood that the region's economic downturn made Australia look more secure.

The aggregate attendance of 297,000 people for the four-day event at the start of this season was down on previous years, but the government said the new contract will generate more than £40 million and 2,270 full-time jobs each year.

The Melbourne Grand Prix has been acclaimed the world's best by the Formula One teams' association for the past two years.