Melbourne will stage the Australian Grand Prix until 2023 after a three-year extension to the Victoria state government's existing deal.
The city replaced Adelaide as hosts in 1996 and despite financial losses has remained the season-opening venue.
Victoria premier Daniel Andrews said: "There's nothing quite like the Australian Grand Prix in Melbourne and the buzz it creates around our state."
F1 boss Bernie Ecclestone said: "We are very happy to extend our relationship."
World champion Lewis Hamilton won this year's race at Albert Park in March.