The state Victorian government wants to keep the Australian Grand Prix beyond 2015 but only with new contract terms.
That is the latest development in the saga surrounding Melbourne's future on the F1 calendar, after powerbrokers Jean Todt and Bernie Ecclestone this week said Australia is important to the sport.
But there is a long-running debate in Victoria about the rising cost of the annual event to taxpayers, and it was the previous government who negotiated the current deal that is not set to expire until 2015.
"There's no doubt about it that the Victorian government would want to secure the Grand Prix," major events minister Louise Asher told Reuters.
"It's just that we're not going to be bunnies in contractual negotiations."