The Australian Grand Prix could yet be saved from demotion from the Formula 1 calendar, though the news may not be quite as bright for those hoping to keep it in Melbourne.

There has been much uncertainty over the race's future for months [see separate story – click here], with Albert Park's contract due to expire in 2010 and a deadlock having been reached in negotiating terms.

The sport's supremo Bernie Ecclestone claims the Australian Grand Prix is not commercially popular enough in order to warrant its retention, and has stated the only way for the country to keep the event would be for it to follow Singapore's example and make it a night-time race, something Australian Grand Prix Corporation chairman Ron Walker has repeatedly insisted is not an option.

Now, however, it would appear that Ecclestone has re-opened the door to the possibility of a race that has been held every year since 1985 remaining on the F1 schedule, with suggestions in the country's press that Sydney could be set to enter talks to host the event.

Having previously vowed that the race would be held either in Melbourne or not at all, the Sunday Herald Sun claims that Ecclestone has now admitted other states are in the reckoning too, threatening to take the race elsewhere should Victoria Premier John Brumby fail to convince him otherwise.

The paper adds that whilst New South Wales Premier Morris Iemma has made no secret of his desire to steal away the race, Ecclestone has revealed the Victorian government has not shown any interest in keeping the race in Melbourne.