The Monaco Grand Prix will continue to be part of the Formula One world championship after its organisers signed a new ten-year contract with Formula One Administration Ltd. The announcement, made in a brief statement on the official Formula One website, followed negotiations between Bernie Ecclestone and Automobile Club de Monaco president Michel Boeri in London this week.

The extension to the deal comes, however, as no surprise. Despite recent comments from Ecclestone indicating that he felt Formula One could do without its historic showpiece event, held each May, in reality the opposite is true. Eccclestone’s comments were widely interpreted as a negotiating tactic designed to try an extract more money from the ACM for the race. Unlike other Grands Prix organisers, the ACM pays a minimal franchise fee to stage the race on account of its importance to the sport.  No financial details relating to the new deal were announced and are certain to remain confidential. Indeed, it is thought to be the first time that a contract extension between Formula One and the ACM has even been publicised.

The race was first staged in 1929 and has been part of the world championship every year since its foundation in 1950. The new deal means a Grand Prix will be staged in the Principality each season until at least 2020, with the 2011 edition scheduled for Sunday 29th May.