Argentina has targeted a return to the F1 schedule for the first time 1998 after work started on a new circuit 80km from the capital city Buenos Aires.
Ground has been broken at the location of Velociudad SpeedCity in Zarate, which is being designed to FIA Grade 1 safety regulations, meaning it would be capable of holding an F1 race if a slot on the schedule could be secured.
Plans for the circuit have been put together by Populous, who were responsible for the successful redesign of Silverstone in recent years.
"The plan is for a circuit capable of delivering a Formula One event," Associate Principal John Rhodes told Reuters
. "The key is to offer a category one circuit. Once the facility is there, then it's down to a promoter. The issue is to have a high performance circuit capable of holding a MotoGP then add the necessary requirements for a Formula One race.
"The main 4.7 km circuit will be good for F1 and endurance races like Le Mans, it's a good, sensible length."
The Brazilian Grand Prix at Interlagos is currently the only F1 event in South America.