Twenty-year deal for Bathurst 1000.

The long-term future of one of the world's most prestigious motor racing events, the Bathurst 1000, has been assured through a 20-year deal between the Australian Vee Eight Supercar Company, AVESCO, and the Bathurst City Council.

AVESCO Chairman Tony Cochrane and Bathurst City Council Mayor Kath Knowles signed the deal at the historic Mount Panorama circuit today. From next year, AVESCO Events will promote and manage the race for the ensuing 10 years with an option to continue for a further decade.

It comes hot on the heels of Federal Treasurer Peter Costello announcing that the Commonwealth Government had allocated $10 million in Tuesday's budget to complete the works at Mount Panorama to make the circuit truly world class and a tourism hub.

The Bathurst event ranks alongside the Melbourne Cup on the world sporting stage.

"This is the most significant deal in the history of the Bob Jane T-Marts Bathurst 1000 and AVESCO," Mr Cochrane said.

"Bathurst will be added to a growing list of events that AVESCO will promote, a list that now includes Symmons Plains in Tasmania announced last week and the final round of the Championship at Eastern Creek.

"AVESCO Events is now a major component of the V8 Supercar Championship Series and will become a major revenue source for our teams.

"Additionally we are going to China next June and constantly looking to other venues both at home and overseas as the appeal of our sport grows more significantly every year.

"I am equally delighted that the Federal Government has also responded to the hundreds of thousands of Motorsport fans in this country. I would welcome Prime Minister John Howard as the Grand Marshall at our Bathurst 1000 events."

Kath Knowles acknowledged that the deal would ensure that Bathurst remains the passion of a nation. It coincides with $22.5 million in improvements to the track and facilities.

"The significant investment made by the people of Bathurst and the State Government into the future development of Mount Panorama has paid off," Knowles said.

"Race teams, sponsors and other key stakeholders can see that the serious commitment being made to bring the race facilities up to a standard that more accurately reflects the reputation of this world class event."

Knowles said that work on the refurbishments was a fortnight ahead of schedule. The first stage includes 36 pit garages, a new control tower, media centre and corporate suites.

"It will be ready by October," Knowles said. "There are also many benefits for spectators by improving vantage points around the track with the 170,000 tonnes of earth being moved from pit lane to build mounds at various key points on the circuit."