A new grand prix in Madrid is set to be officially announced in less than a week's time.

It has been known for some time that plans are well advanced to stage a semi-urban Formula 1 race around the Ifema event facilities in the Spanish capital.

Europa Press is now reporting that Isabel Diaz Ayuso, president of the community of Madrid, and mayor Jose Luis Martinez-Almeida, is ready to make an official announcement.

"I believe that there is no administration or country that could reject such a project," Ayuso is quoted as saying.

In her New Year speech, Ayuso added that "on January 23 there will be a big announcement".

"There is so much that the Madrid brand and the Spain brand can contribute that I hope to see the two administrations make the announcement on that day."

Mayor Almeida also commented: "I have space on the agenda reserved on the 23rd for very good news for Madrid related to sports."

The Spanish sports newspaper Marca claims that F1 CEO Stefano Domenicali will also be present at the announcement event next Tuesday.

It is believed the initial Madrid GP contract will be for a full ten years, and could eventually replace Spain's existing grand prix in Barcelona.