Melbourne has extended its deal to host Formula One's Australian Grand Prix until 2023.

Albert Park has provided the setting for the race since 1996, serving as the curtain-raiser for all but two seasons since taking over from Adelaide's street circuit.

"We are very happy to extend our relationship with Melbourne, who continue to set the standard for Formula One events globally," said F1 supremo Bernie Ecclestone. 

"This new agreement will take the city past 25 consecutive years of hosting Formula One, a super achievement."

Premier of Victoria Daniel Andrews added: "There's nothing quite like the Australian Grand Prix in Melbourne and the buzz it creates around our state.

"It attracts visitors to Victoria from all over the globe, and shows the world we have the best of everything."

Melbourne's hosting of the event has proved controversial among locals in recent years, with taxpayers reported to have contributed 60 million Australian dollars to the 2014 race.