The Canadian Grand Prix will return to the Formula One schedule next season after the government helped land a five-year deal to stage the race in Montreal.

The race had been dropped from this year's calendar but months of speculation over the future of the event were ended when the government announced its intervention at a press conference.

A total of £8.5million per year for the next five years will be invested in staging the race after the governments of Canada, Quebec and Montreal, along with Tourisme Montreal, came together to secure the event.

The five-year deal will begin on June 13, 2010 and the backers will each receive 30% of the profit on ticket sales for the race.

Montreal mayor Gerald Tremblay said: "The return of Formula 1 to Montreal attests to our sustained efforts and determination.

"This win-win deal falls in line with the terms we set and the taxpayer's ability to pay and will create stability for the next five years.

"I am very pleased that our metropolis is bringing back this crucial stage in the Formula One series for fans from around the world and an outstanding opportunity in terms of the event's international reach."

Raymond Bachand, the Quebec minister of finance and minister responsible for the Montreal region, said: "For Quebec, this event by itself results in annual tax revenues of more than £5.5million, for a £2.2 million investment, minus revenues from ticket sales.

"All three levels of government have worked together tirelessly over the past few months to bring the grand prix back to Montreal, while acting in a financially responsible manner.

"With this agreement in hand, I am delighted that our efforts have finally succeeded."