It was officially confirmed at a press conference in Valencia this morning, that the city will host a round of the Formula One World Championship for seven-years, starting from 2008.

At the press conference, which was attended by F1 supremo Bernie Ecclestone, together with Valencia Mayoress Rita Barbera and Francisco Camps, president of the regional government, it was confirmed that the race will take place on a street circuit which encompasses the renovated port area, currently host to the America's Cup.

Contrary to previous speculation, the Valencia event will not alternate with the Spanish Grand Prix at Barcelona - which has a contract until 2011 - which means that Spain will have two races from next year. The Valencia race will become the European GP.

This comes at a time when Germany and Italy - which for many years hosted two rounds of the world Championship - are reduced to one race a piece, Ecclestone having previously said that European countries should not host two races. It is purely co-incidental that Germany and Italy lose races at the same time as Ferrari superstar Michael Schumacher retires, and Spain gain a race with Fernando Alonso on the ascendant.

The one possible fly in the ointment is that the Valencia race is conditional on Camps retaining his position in the local elections which are to be held later this month.