Formula 1 is set to return to Donington Park for the first time since 1993, as it has been officially announced that Silverstone has lost the rights to host the British Grand Prix.

The news means the race – the blue riband event on the British motorsport calendar – will be held at Silverstone, the self-styled 'Home of British Motor Racing', for the final time in 2009.

Since the inception of the F1 world championship all the way back in 1950, the former Northants airfield has welcomed the sport on no fewer than 41 occasions, with Donington's sole appearance on the schedule coming when it featured as the European Grand Prix 15 years ago – a race made famous by the late, great three-time world champion Ayrton Senna's spellbinding performance in torrential conditions.

With Silverstone's owners the British Racing Drivers' Club having failed to come to an agreement with F1 ringmaster Bernie Ecclestone over financial terms for a new deal, however, the race will now be held at Donington from 2010 – in an unusually long ten-year agreement.

“Finally the uncertainty is over,” Ecclestone announced. “A contract has been signed with Donington Park, and the future of the British Grand Prix is now secure.

“We wanted a world-class venue for F1 in Britain, something that the teams and British F1 fans could be proud of. The major development plans for Donington will give us exactly that – a venue that will put British motorsport back on the map.”

Those development plans – said to take the form of a five-year investment programme – are believed to be the product of a healthy £100 million boost from an unidentified donor, referred to only as 'a private investor who is also a large shareholder'.

All of that will undoubtedly be needed to bring the circuit's facilities up to F1 standard, with the Leicestershire venue currently lagging a long way behind Silverstone in that regard. The track itself will also require lengthening.

Ecclestone admitted that he was disappointed that the UK government had not intervened to help Silverstone retain the race.

“I am sorry that we could not have helped Silverstone to raise the money to carry out the circuit improvements and run Formula One,” the 77-year-old said. “I believe that the government should have supported them, which would have cost probably less than .002 per cent of the government's commitment for the Olympic Games.”