The Italian government boosted Imola's efforts to stay on the Formula One calendar on Wednesday when it confirmed work will start next month on modernising the circuit.
The Prime Minister's office said in a statement that construction work at the San Marino Grand Prix venue would start on Oct 4.
Formula One teams, manufacturers and the governing International Automobile Federation offered Ferrari's home track a lifeline this week when they agreed to expand the 2007 calendar from 17 to 18 races.
Imola, the circuit where Brazilian Ayrton Senna died in 1994, had been left off an earlier calendar which limited both Italy and Germany to just one race each.
While Hockenheim and the Nuerburgring are expected to alternate hosting Germany's race, Imola organisers and Ferrari have been lobbying for the San Marino Grand Prix to be reinstated.
"All participants repeated their willingness to work together so that the grand prix can be held on April 29, 2007 and in following years," Wednesday's statement said after a meeting in Rome.
"The government confirms that the works to modernise and improve the safety of the circuit facilities will start on Oct. 4," it added.
No race is currently scheduled for April 29, with a gap between the third round of the season in Bahrain on April 15 and Spain on May 13.
Sports Minister Giovanna Melandri attended the meeting with the president of the Emilia Romagna region Vasco Errani, Imola mayor Massimo Marchignoli, Automobile Club president Franco Lucchesi and civil protection agency head Guido Bertolaso.