Melbourne will continue to host the Australian Grand Prix until at least the 2015 season after a new contract was inked with Formula One Management in London overnight.

The announcement ends a period of speculation over not only the venue's future, but also Australia's place on the Formula One calendar, after wrangling over whether the event should be held 'after dark' to appease audiences in the sport's European heartland. Suggestions that Albert Park might not be retained led to rumours that other circuits were prepared to bid for the race - including a revamped Eastern Creek - but Victoria state premier John Brumby has said that the grand prix's role as a 'jewel' in Melbourne's major events strategy - alongside the likes of the Australian Open Tennis, Boxing Day Test and AFL Grand Final - ensured that a compromise was found.

“Today's announcement confirms what every Melburnian knows – we live in the undisputed major events capital of the world,” Brumby said, “The grand prix has been an outstanding event for Victoria over a long period of time and has helped put Melbourne on a global stage. Retaining the event is important to Victoria's ongoing growth and prosperity. Our year round calendar of sporting and cultural events draws hundreds of thousands of visitors to our wonderful city every year.”

As a result of negotiations between race officials and FOM's Bernie Ecclestone, the race will be held at 5pm local time next year, while an agreement has been reached to not use any artificial lighting for the term of the latest contract, scotching suggestions that the event would run as a 'night race'.

Keen to rid himself of claims that the event was an expensive drain on resources, Brumby said that the grand prix delivered 'value for money' for Victoria, in terms of the money the race brings to the state, as well as the international exposure it brought to Victoria and its capacity to act as a drawcard for other major events.

“The grand prix brings big spending tourists, creates employment and business opportunities and provides Victorians with another opportunity to enjoy world-class entertainment in their own capital city,” he said, “The massive television exposure that Melbourne receives year in year out has helped build our world-wide reputation as a great place to visit and a great place to live.

“Next year's later start time will mean even greater TV audiences in the United Kingdom, Asia and European markets which means more exposure for 'brand Melbourne' than ever before.”

Ecclestone, despite holding diverse opinions about whether the event had a future in Melbourne without becoming a night race, admitted that he was delighted that the grand prix would continue in Melbourne.

“The Australian Grand Prix has always been a great show, with some of the biggest crowds in Formula One,” he said, “I have wanted changes to the local race time so that we can increase the television audience in Europe and Asia. I'm satisfied that the decision to move to later start time for 2009 races is a win for television audiences in Europe and Asia, a win for Melbourne and a win for Formula One as a whole.”