Russia is set to announce a five-year deal to host a Formula 1 grand prix from 2014, according to a government source in the country.
Formula 1 commercial chief Bernie Ecclestone is meeting prime minister Vladimir Putin in the city of Sochi, reports the Reuters news agency.
Putin was quoted as saying: "We have reached an agreement with the principal owner of Formula 1 that Sochi would host the Russian Grand Prix from 2014 to 2020."
Sochi is on the south west Black Sea coast of Russia, near the Georgian border, and will also host the Winter Olympics in 2014.
Russia has had its first Formula 1 driver this year, with Renault's Vitaly Petrov 13th in the standings with 19 points. Though his place at the team beyond the end of this season is yet to be confirmed.