Sydney's Eastern Creek circuit, built in 1990 to host a round of the World MotoGP championship and subsequently used by A1 GP, V8 Supercars, and the Australian Superbike Championship, could play host to the Australian GP when Melbourne's contract runs out after the 2010 race.

The Australian Racing Drivers' Club (ARDC) has commissioned a feasibility study to discover whether the track could be brought up to F1 standards, and the sort of costs involved.

Apex Circuit Design Ltd, a British company which designed and built the Dubai Autodrome, and is currently involved in the development of the Singapore F1 Grand Prix circuit as well as the redevelopment at Silverstone, has been called in to carry out the study.

The Melbourne race is under threat for a number of reasons, but upper most is Bernie Ecclestone's demand that the event be held at night. Although organizers have agreed to move the race to an early evening slot, it is unlikely that they would be allowed to hold the race at the time of night Ecclestone is demanding. Furthermore, with the event losing money year on year, politicians and tax-payers are questioning the true value of the event.

According to The Australian, ARDC President John Cotter believes the study is "an essential first step in plans to ensure Australia remained relevant in world motorsport".

"Strong competition from emerging nations to secure major motorsport events threaten to marginalise Australia," he said, "with a resulting loss in status and tourism potential. Equally, there is a real need to ensure that Sydney is well serviced with a motoring and motorsports complex to meet local needs, including driver education, track days and motor industry development requirements. The impending closure of Oran Park Raceway in Sydney's south-west will leave the Sydney basin with only Eastern Creek Raceway, and its use is already at near full capacity."

Cotter hopes that the study will provide a 'masterplan', which would double the circuit's full-time capability on a year-round basis.

Redevelopment of the track would mainly depend on funding from the New South Wales Government, which Cotter believes is a better solution than some of the scenarios being put forward.

"There has been some talk of persuading the NSW government to spend substantial money on a non-permanent street circuit less than 20 kilometres from Eastern Creek Raceway, a model similar to that of Melbourne's Albert Park F1 track and the Surfers Paradise Indy Car track. Both are used only once a year with large set-up and deconstruction costs.

"The ARDC believes a permanent motorsport complex would be a far more cost-effective proposition, and be far more useful," he added. "It would have all of the upsides of tourism and excitement combined with the value benefit of year-round use."