According to veteran F1 journalist Joe Saward, the Spanish GP will take place at a new track in Madrid, rather than Barcelona.
The circuit will be situated around the IFEMA convention centre, nearby to Barajas Airport.
The deal is reported to be for 10 years, bringing an end to Barcelona’s regular appearance on the F1 calendar.
The circuit will be a semi-permanent venue, with Saward likening it to Montreal and Melbourne - which aren’t 100 per cent street circuits like Monaco, Singapore.
It has been mooted over the past 12 months that Madrid have wanted to host F1’s Spanish event.
It won’t be the first time F1 has raced in the Spanish capital though, with Jarma last hosting a grand prix in 1981.
F1’s current Spanish venue at the Circuit de Barcelona-Catalunya, while traditional, has never provided regular thrillers in terms of on-track action.
In recent years, there has been a clear trend from F1 and its owners, Liberty Media, to push for street or city races.
Saudi Arabia, Miami and Las Vegas have all been added to the F1 calendar since 2021, with more classic events such as Spa and Monza coming under increased threat.
Organisers will be hopeful that two-time world champion Fernando Alonso will be still on the grid in 2026.