China to build new F1 circuit

China could be set to be handed a Formula One grand prix as early as 2004.

Building is scheduled to start on a new circuit near Shanghai later this month.

It has been suggested that the first Chinese Grand Prix could take place the season after next.

An official spokesman of the Shanghai International Circuit Company confirmed: "We have an agreement with the Formula One Administration to hold races from 2004 until 2010."

The final say whether Shanghai will get a race will be with F1's world governing body the FIA.

The planned circuit and facilities are expected to cost around £200million.

This is China's second attempt to host an F1 race after the Zhuhai track in the south of the country failed to meet with the FIA's international security standards in 1998.