It comes as F1 looks to expand into new territories, with South Africa, Thailand and a new Saudi Arabia track among the events looking to be added to the calendar in upcoming years, as well as Madrid.
The Spanish GP is currently held at the Circuit de Barcelona-Catalunya, but there have been suggestions that it could move to a new track in the capital city from 2026, with Madrid being confirmed as a host venue, but the current Spanish GP location not yet being confirmed to be dropping off the calendar.
Now, Madrid Mayor Jose Luis Martinez-Almeida has confirmed a major development in the building of the race track.
"We are in a position to issue the license for the Formula 1 circuit tomorrow (Friday) and, therefore, to continue moving forward with the necessary steps to bring F1 to Madrid," he said during a council meeting.
"Formula 1 is going to be a hallmark of this city. We should all be very happy, except for those who are always resentful and bitter about the good things that are happening to the city of Madrid, like the arrival of F1. Construction of the circuit will begin immediately."
Meanwhile, Marca are reporting that the Mas Madrid municipal group will file an administrative appeal before the Madrid High Court of Justice against the plan to hold F1 in Madrid, and will request its precautionary suspension until a ruling is issued.
Will the Spanish GP have a new home in 2026?
What will the Madrid F1 circuit look like?
The 5.47km street circuit will weave around the IFEMA exhibition centre in the Barajas district, just five minutes away from the Adolfo Suarez airport and 16 kilometres from the city centre.
The circuit promises fast sweeps, tight chicanes, and long straights. 20 corners will challenge drivers throughout the 5-kilometre course, offering four potential overtaking points. Expect an average speed of 218 km/h, with qualifying laps estimated to clock in at around 1 minute and 32 seconds.
The start/finish line in front of the Paddock Club will see drivers speed down the Ribera Del Sena, a long straight that gives them a chance to build up speed. As they approach the Valdebebas Tunnel, they must brake hard and prepare for the tight corners ahead.
Emerging from the Valdebebas Tunnel, the drivers face a series of challenging corners, starting with the Valdebebas Curve, which is a fast right-hander.
From there, the track winds its way through the heart of Madrid, past the IFEMA Madrid exhibition centre and other landmarks, before reaching the finish line.