Taxpayers' money will not be used to broker a deal to secure the future of the British Grand Prix.

Despite the motor racing industry being worth £4billion to the economy, Lord Peter Mandelson said on Sunday that the Government should not step in to ensure the race is staged in 2010.

As settlement talks continued with Silverstone bosses in Abu Dhabi, the Secretary of State for Business urged both parties to find a solution.

The grand prix was thrown into doubt when Donington Park this week missed a deadline to prove it could raise the £100million it needed to stage the race.

Lord Mandelson said: "The British Grand Prix is a very important event, it's a much-loved British institution and it's got to continue.

"The whole of motor sport is important, not because of the enjoyment it provides but because it's really important for our economy.

"It contributes getting up to £4billion to the economy and if you look at the jobs it creates there are 25,000 engineers involved in this sport in Britain, quite apart from 40,000-odd other jobs, so I have a responsibility to retain it and to support the motor sport industry just as I would any other."

Lord Mandelson insisted the government would apply pressure for a decision to be resolved but revealed they would not be providing the £12m needed for the race to be held at Silverstone next year.

"I'm not in a position to use taxpayers' money to bale out what would be a sort of commercial venture in a very cash-rich sport," Lord Mandelson told BBC Radio 5Live's LSportsweek programme.

"I can't do that, especially during a recession, but he (Ecclestone) has my backing in what he's trying to do.

"But he also has my pressure to make sure that just by accident we don't lose the grand prix from this country. I don't want to see that and it would damage us, it would damage our sport but it would also damage our economy.

"All I would say is 'come on you guys, get your act together, get your negotiations done and make the British Grand Prix safe'."

When asked whether he believed the grand prix would take place at Silverstone next year Lord Mandelson replied: "If I was a betting man I would say yes."