Melbourne will continue to host a Formula One Grand Prix until at least 2015 after agreeing to start the race at 5pm local time to make it more television friendly for northern hemisphere audiences.

Victorian Premier John Brumby announced the extension of Melbourne's contract after meeting with Formula One management in London.

"The Grand Prix has been an outstanding event for Victoria over a long period of time and has helped put Melbourne on a global stage," Brumby told a news conference on Friday.

"Retaining the event is important to Victoria's ongoing growth and prosperity."

Brumby said no artificial lighting would be used for the term of the contract despite the race not starting until 5pm.

"Next year's later start time will mean even greater TV audiences in the United Kingdom, Asia and European markets," Brumby said.

Formula One supremo Bernie Ecclestone had threatened to take the Australian race to Sydney or scrap it completely if Melbourne did not change the starting time.

"I have wanted changes to the local race time so that we can increase the television audience in Europe and Asia," he said in a statement.

"I'm satisfied that the decision to move to later start time for 2009 races is a win for television audiences in Europe and Asia, a win for Melbourne and a win for Formula One as a whole."

Last year's race attracted more than 300,000 spectators to the inner-city Lake Albert street circuit, one of the best attended races on the calendar.