AFTER almost a year of haggling, Formula 1 supremo Bernie Ecclestone and the Singapore government have finally agreed to extend the Singapore Grand Prix for another five years, according to a report in TODAYonline.

Originally scheduled to lapse after this year's edition from September 21-23, the previous deal also included an option for a further two races in 2013 and 2014.

Earlier this week, Singapore’s Second Minister for Trade & Industry, S Iswaran, revealed that discussions between Ecclestone and race promoter Singapore GP to extend the event were still ongoing.

Iswaran emphasised that Singapore would continue to host the race "only if the terms for a full five-year extension (were) economically viable".

The costs of hosting the Singapore Grand Prix are believed to include an annual rights fee of around US$40 million, and another S$150 million (US$118.5 million) to prepare for each race – of which 60 per cent is funded by the Singapore government.

A feasibility study on the benefits of securing an extension for the race revealed that the first three editions raked in more than S$420 million in tourism receipts, and attracted an average of more than 110,000 international visitors to Singapore each year.