The Formula one grand prix will once again grace the soil of The United States. Despite news reports stating that New York was Ecclestone's preferred location, Austin (Texas) will in face stage its first race in year 2012.

The 10-year contract is for a "purpose-built" facility, F1 chief executive Ecclestone said in a statement, although details including an actual site, cost or race date were not released. A report of the AP news agency said the venue would be built "within 10 miles" of Austin airport.

The promoter for the event is Full Throttle Productions, headed by Tavo Hellmund. Mr Tavo is said to have known Mr Ecclestone for 30 years. "We have been diligently working together for several years to bring this great event to Austin, the State of Texas and back to the United States," said Hellmund.

Never on a purpose-built circuit, previous US grand prix have been held at Watkins Glen, Long Beach, Las Vegas, Detroit, Dallas and Phoenix.

Between 2000 and 2007, the famous Indianapolis Motor Speedway hosted the event, and spokesman Fred Nation on Tuesday questioned whether the "business deal" between F1 and Austin is a sound one. He said,