The British Grand Prix will leave Silverstone and move to Donington Park from 2010, the FIA announced on Friday.
After months of speculation about whether or not Silverstone would retain the race, Donington Park has moved to complete a deal to secure the future of the event.
FIA President Max Mosley said: "After many years of patient but fruitless negotiation with the BRDC, we are delighted that Bernie has nevertheless been able to ensure that the British Grand Prix will keep its place on the Formula One World Championship calendar.
"We understand that the development programme planned for Donington will achieve the very high standards we and FOM expect from a modern F1 circuit. Finally, British Formula One fans will get the Grand Prix venue they deserve."
Bernie Ecclestone, FOM President, added: "Finally the uncertainty is over. A contract has been signed with Donington Park and the future of the British Grand Prix is now secure.
"We wanted a world class venue for Formula One in Britain, something that the teams and British F1 fans could be proud of. The major development plans for Donington will give us exactly that. A venue that will put British motor sport back on the map.
"I am sorry that we could not have helped Silverstone to raise the money to carry out the circuit improvements and run Formula One. I believe that the government should have supported them which would have cost probably less than .002% of the government's commitment for the Olympic Games."