Rally GB to stay in Wales to 2011

The event will continue to be supported by the Welsh Development Agency, who has been the title-sponsor since 2003, and will continue to be known as the Wales Rally GB, with a five-year sponsorship deal estimated to be worth up to £40m to the Welsh economy.

The news was welcomed by Motor Sports Association chairman John Grant, who said the agreement would secure the long-term future of the event in Wales.

He said: "It is indeed excellent news - the importance of the national government supporting an event like this should not be under estimated and we welcome the opportunities it presents. Wales Rally GB has gone from strength to strength in terms of organisation and is acknowledged as one of the best rounds of the WRC.

The deal was announced by Andrew Davies, minister for economic development and transport.

Since the event moved to Cardiff in 2000, the rally is estimated to have contributed at least £28-£30m to regional output through event receipts and spending alone and Davies said the economic case for continuing to support was sound.

"Every pound of public sector support generates an additional £2 to the Welsh economy," he said.