Melbourne has secured a new Formula 1 deal that will keep the Australian Grand Prix in the city until at least 2020.

A statement from the organisers said the 2016-20 contract extension had been agreed with Bernie Ecclestone’s Formula One Management in London last week after year-long negotiations.

Premier of Victoria Denis Napthine hopes Melbourne can now capitalise on Daniel Ricciardo’s emergence as Australia’s new F1 star, following the Red Bull driver’s spectacular Canadian and Hungarian GP wins.

“Within this contract we hope to see Australia’s own Daniel Ricciardo win the Formula 1 Australian Grand Prix and become world champion,” said Napthine.

“I congratulate Australian Grand Prix Corporation chairman Ron Walker for his success as a tough negotiator in getting the best deal for Victoria.”

Melbourne is also set to retain its season-opener slot for 2015, with the organisers anticipating a March 15 race date next year.

The Albert Park track has been part of the F1 calendar since 1996, when it replaced Adelaide as the Australian GP venue.

Of the other circuits on the 2014 calendar, only Barcelona, Monaco, Silverstone, the Hungaroring, Spa, Monza and Interlagos now boast longer unbroken runs on the schedule than Melbourne.