New Grand Prix deal waiting to be signed

There is a deal on the table to extend the Melbourne Formula One Grand Prix beyond 2015, but the state government is in no rush to sign it.

Melbourne's contract to host the Albert Park race ends after next year's event and Grand Prix Corporation chairman Ron Walker says he has negotiated a new deal for the race.

"I think that the foreplay is over so to speak and it's now a case of talking to the government about whether it is worth it or not," he told Fairfax Radio on Friday.

"There is a deal on the table and it's up to the cabinet sub-committee to recommend to cabinet whatever they want to recommend. We can only do our best and we will see what happens."

Tourism and Major Events Minister Louise Asher said the government wants the race to continue but will make a decision based on value for money.

"I haven't set myself a timetable, obviously we have next year's race and there is no need to rush on this," she told Fairfax Radio.

"I think everyone in the government wants the race. The assessment is going to be made over the price."

Ms Asher said the race brings many benefits to Melbourne including increased tourism and branding for the city.

The state government pays a subsidy to host the event, which includes about $25 million to set up the Albert Park circuit.

Last year it spent $50.67 million to host the event, down from $56.66 million in 2012.

Ms Asher said last year Melbourne faces stiff competition, including from non-democratic countries that are not as financially accountable as Victoria, to host the race.

Melbourne has staged the race since 1996.