The Formula One British Grand Prix at Silverstone has been secured with a deal between the race track and Formula One Management worth more than 300 million pounds, it was announced on Monday.

The deal will see Silverstone, in Northampton shire in the English Midlands, continue to host the British Grand Prix annually for the next 17 years.

It will now remain among the ranks of other Formula One circuits -- such as Shanghai and Abu Dhabi.

Silverstone had looked set to be ousted as the British venue for the F1 Grand Prix when it was announced earlier this year that Donington Park, in England's East Midlands and home to the British Superbike Championship, was F1's preferred choice for future British Grand Prix. But funding for the Donington Park move has been a victim of the credit crunch.

Richard Phillips, managing director of Silverstone Holdings which runs the Silverstone circuit, told the BBC on Monday: "The future of the British Grand Prix at Silverstone has been hanging in the balance for the past couple of months, and it was certainly a hiccup when we heard it was going to Donington.

"But we are delighted to announce we have a 17-year deal after negotiations with (Formula One's) Bernie Ecclestone.

"We did do the deal on Friday but were unable to say anything over the weekend. Tickets (for 2009's Grand Prix) went on sale today at 10.30 a.m. and the Internet and phones just went wild.

"Seventeen years give us the opportunity to invest that we didn't have before under the five-year deals."

Phillips said that the building of a new track was underway and that next year a new paddock, where the teams can prepare, repair and refuel the cars before and during the race, will also be built.

Phillips said he was delighted to keep the Grand Prix at Silverstone because F1 fans liked the circuit. "We are happy to have the fan base we have got and we are happy to be able to put something back in the future," he said.

Ecclestone said: "I am pleased that we have reached an agreement with Silverstone for the retention of the British Grand Prix. This will ensure that Britain will remain on the Formula One calendar for many years to come, which is something I have personally always wanted to see happen. The team at Silverstone already knows how to organize a good event, so now everyone can look forward to next summer at Silverstone."

Damon Hill, President of the British Racing Drivers' Club (BRDC), which owns the circuit, said: "We are delighted that the long term future of the British Grand Prix has been secured and that Formula One will be remaining at Silverstone, its natural home in Britain, for at least the next 17 years. This long term contract will enable us to continue with our plans to develop Silverstone into a world class facility, bringing the venue into line with the very best sports facilities in the world for the benefit of all race goers, teams, drivers and fans."

Silverstone is an historic circuit. It was a Royal Air Force aerodrome before the RAF moved out just after the second World War, and it first came into use as a racing circuit in 1947.

The first British Grand Prix was held at the circuit in 1951, and it is the oldest grand prix in the world. From the early 1960sonwards it shared the British Grand Prix with Brands Hatch, in southern England, with each taking it in turn to host the event. This carried on until the 1987 season, when Silverstone became the sole venue.

In recent years, Ecclestone, who heads Formula One Management, has developed the brand in south and East Asia and the Middle East, at the expense of its European heartland. The French Grand Prix has gone, and along with it the San Marino Grand Prix in the tiny country surrounded by Italy.

Instead of their places, new circuits have come to the Grand Prix like Shanghai and Abu Dhabi.

Next year's Silverstone Grand Prix looks set to be a spectacular event, with current world champion Jenson Button, a Briton, set to race against last year's Formula One world champion, and fellow Briton, Lewis Hamilton. Both will race for McLaren.