The deal, which will reportedly cost Russia £25m a year, also includes an option to extend it by five years.

"It can be a super circuit," said Ecclestone. "It's all the things we need and wanted and we are very happy."
However, the opening Russian GP could take place in 2015 as Sochi is also hosting the Winter Olympics in 2014.

Deputy Prime Minister Dmitry Kozak raised the possibility of putting the race back by a year if it affects preparations for the Winter Olympics.

Ecclestone, who has been trying since at least 1982 to take F1 to Russia only to see plans for races in St Petersburg and Moscow collapse, praised the country's sports officials, adding: "They are trying to build absolutely first-class facilities both for the Olympics and Formula 1.