Circuit of Wales preparing new model after Welsh Government setback

The group behind the new venue, Heads of the Valleys Development Company announced last November that financing was in place, and that it had been granted permission to purchase land in Blaenau Gwent.

Insurance firm Aviva has emerged as the expected major backer, but a major hurdle arose when the Welsh Government announced it would not underwrite the £357.2million project.

The Circuit of Wales had secured rights to host MotoGP in the UK until 2019 in a five-year deal, but with construction yet to begin, Silverstone has stepped in.

Michael Carrick, CEO of Heads of The Valleys Development Company, said the group could "respect and understand" the Government's decision, and that it had presented other options.

"The Circuit of Wales is committed to the regeneration of Blaenau Gwent through the building of a leading automotive and leisure destination in South Wales," he said.

"We are developing financing arrangements with Aviva Investors and Public Sector Wales and have put forward two alternative options with revised commercial terms.

"These alternative arrangements will reflect a more balanced financial support package for both the public and private investment parties.

"We are working closely with all parties involved, including the local community and councils to conclude the deal over the next six to eight weeks."

SILVERSTONE POSITION "UNCHANGED"

The British Motorcycle Grand Prix has been held at Silverstone since 2010 following an earlier stint between 1977 and '86, with Donington Park the venue between those runs.

Silverstone reached an agreement with Circuit of Wales to host the race in 2015 and '16 on the latter's behalf, during its construction.

A Silverstone representative confirmed to Autosport on Thursday that the circuit's position remained "unchanged", in terms of hosting MotoGP this year and its relationship with Circuit of Wales.

With Carrick describing the start of Circuit of Wales construction as "imminent", an interim home for the British GP in 2017 is also set to be required.