Two influential officials have cast doubt on the future of Melbourne's Australian Grand Prix.

First, the city's Lord Mayor Robert Doyle said the annual event at Albert Park, contracted to host the race through 2015, is no longer value for money.

"My judgment would be: get ready. Time's up," he wrote in the Sunday Herald Sun newspaper.

And the state of Victoria's new premier Ted Baillieu admitted that the $50 million per year taxpayer's bill for the race will need to be reduced.

"The Grand Prix has been great for Melbourne and great for Victoria but we look forward to (it) performing financially better than it has and we will be looking to make sure that happens," he said.