F1 here until 2015

Under the verbal agreement, expected to be signed off within days, the Government and the international Grand Prix bosses have consented to a five-year extension.

That would see the international race stay at Albert Park until at least 2015.

There had been doubts the race would go on in Melbourne after running at losses of up to $160 million in the past 12 years.

A senior government source last night confirmed the race would remain in Melbourne, saying an announcement was "imminent".

 "We haven't signed the deal, but we're going to quite soon," the source said.

The deal is expected to include a move to later race start times; probably about 5pm; to attract a wider European television audience.

But it will not be a night race.

F1 boss Bernie Ecclestone had told the Sunday Herald Sun he would take Melbourne's race to "India, Russia or Korea" unless it was staged at night.

He wasn't available last night to discuss the deal or his reasons for his backflip on Melbourne retaining the race.

Tourism and Major Events Minister Tim Holding said the race would not start after dark.

"We have ruled out a night Grand Prix and that is not negotiable," he said.

"This is a good event for the state. It's one we want to keep and we'll be working hard to ensure that it does remain here in Melbourne in the years ahead."

The government source said Mr Brumby and Mr Ecclestone had reached a compromise.

"They've come to an agreement," the source said.

Melbourne race organisers this year offered an olive branch to Mr Ecclestone and the FIA by moving the race starting time from 2pm to 3.30pm.

Next year's race will start at 5pm and future events may start at a similar time or even slightly later.

Melbourne's retention of the Australian Grand Prix spoils the party for interstate raiders who wanted to lure it to NSW, Queensland and South Australia.