Bernie Ecclestone has confirmed that the British Grand Prix will move from Silverstone to Donington Park from 2010.

The East Midlands venue, home to the British round of the Moto GP championship, has secured a ten-year agreement to stage the race but will require a multi-million-pound facelift to ensure it meets the standards required to run a grand prix.

"Finally the uncertainty is over," Ecclestone, the president of Formula One Management (FOM), said. "A contract has been signed with Donington Park and the future of the British Grand prix is now secure."

Computer magnate Simon Gillett and business partner Lee Gill, who run the circuit on a lease arrangement with its owner Tom Wheatcroft, plan an £100m upgrade of site over the next five years.The money will come from an unnamed private investor, who is also a large shareholder. Donington has staged one Formula One Grand Prix, the European in 1993.

A joint statement issued by Gillett and Gill said: "We are naturally delighted and extremely proud to have acquired the rights to bring Formula One back to Donington Park from 2010.

"At the beginning of last year when we acquired the circuit and its substantial lands, we made clear our commitment towards realising the full potential of the park by making the necessary investments in current and future events that will see Donington revitalised, ensuring its leading position as one of the most iconic racing circuits in the world.

"To that end, we have entered a new and exciting chapter in the development of the park, one that will bring significant investment and regional development, while securing the future of one of the most important sporting events in Britain."

The news will come as a blow for the British Racing Drivers' Club, which owns Silverstone, as it has long been in detailed talks with Ecclestone with regard to a new deal. Ecclestone has continually expressed unhappiness at the facilities at the track and the 77-year-old has made it plain over the years the circuit was in need of drastic improvement to avoid it losing the race.

Earlier this year Silverstone's owners finally acquired planning permission to build a new £30 million pit and paddock complex that would be the first phase of a multi-million-pound redevelopment, but Ecclestone's patience had run out.

"We wanted a world class venue for Formula One in Britain, something the teams and British F1 fans could be proud of," Ecclestone said. "The major development plans for Donington will give us that. A venue that will put British motor sport back on the map. I am sorry we could not have helped Silverstone to raise the money to carry out the circuit improvements."

Ecclestone criticised the British Government for not offering financial support to Silverstone. "The Government should have supported them, which would have cost probably less than 0.002 per cent of their commitment for the Olympic Games," he said.

Max Mosley, the FIA president, said: "After many years of patient but fruitless negotiation with the BRDC, we are delighted Bernie has been able to ensure the British Grand Prix will keep its place on the Formula One World Championship calendar."

"We understand the development programme planned for Donington will achieve the very high standards we and FOM expect from a modern F1 circuit. Finally, British Formula One fans will get the grand prix venue they deserve."

The announcement shatters the 60th anniversary celebrations for Silverstone, which hosted the first grand prix of the modern era in 1950, but it dispels fears that Britain would lose its grand prix to the growing number of foreign governments courting Ecclestone.