In what is undoubtedly the most important deal of its long F1 history, Silverstone and Formula One Management have agreed terms to host the British Grand Prix in 2010 and then for the next 17 years. 

The Northamptonshire circuit, which is run by the British Racing Drivers Club, stepped in to host the Grand Prix, which next year takes place on July 11, following the collapse of Donington Park's bid to host the race - and was stripped of its rights.

The fee for hosting the race was aways a bone of contention for the BRDC, but according to the BBC, agreement was reached at £12m in 2010 followed by an annual rise of 5%.

And the news ensures the oldest race on the F1 calendar retains its place after a long period of uncertaintly. Under the new agreement, Silverstone, which hosted this year's British Grand Prix in July, will be redeveloped with an impressive new pit and paddock complex, and more demanding circuit layout.

Sports minister Gerry Sutcliffe commented: 'The news the British Grand Prix is to stay at the iconic Northamptonshire track will be welcomed by millions of fans - not just in this country but across the world.'