Central European country Croatia is the latest name linked with F1's ever-expanding calendar.
The daily Vecernji List said the FIA, Bernie Ecclestone and regular Formula One track designer Hermann Tilke are keen to support the project set for just outside the capital Zagreb.
The report said the estimated budget is EUR 250 million, funded by private investors, with the Croatian government to support the project in terms of easing bureaucratic obstacles.
The project would take more than 18 months to complete, added the report.
At the weekend, thousands of Croatians marched in Zagreb demanding the fall of the government amid a financial crisis and allegations of corruption.
The country is not yet a member of the European Union.