Valencia will stage F1 street race in 2008

[The Stig]

 Valencia will stage the European Grand Prix starting next year after Formula One chief Bernie Ecclestone signed a seven-year contract with event organizers on Friday.

The Valencia regional government confirmed that Ecclestone signed the agreement with Valmor Sport, which owns the rights to organize the street circuit race. The regional government has a 25 percent stake in the private business.

The agreement to bring a second F1 race to Spain after the Spanish GP in Barcelona was announced May 10.

Valmor will reportedly pay $35.17 million annually to Ecclestone for the rights to stage the race, an event previously held in Nuerburgring, Germany. The Valencia race is likely to be held in August.

The street circuit, designed by German racetrack architect Hermann Tilke, will be based around Valencia's port, which is currently staging the America's Cup sailing event.

Ecclestone had said the contract would only be signed once the outcome of the regional and municipal elections were confirmed.

Valencia regional President Francisco Camps and Mayor Rita Barbera - who are in the opposition Popular Party and spent two years negotiating the agreement with Ecclestone - were re-elected on May 27.

[Ian]

Obviously Bernies making a lot more from Valencia than Silverstone, thats why he wants to get rid of Silverstone.