The government of Valencia have confirmed that they are looking to renegotiate their contract with F1 supremo Bernie Ecclestone.
The Spanish port city has hosted the European Grand Prix since 2008 and their current deal, which is reportedly worth €20.5 million per race, runs until 2014.
However, vice-president of the Generalitat Valenciana Jose Ciscar says they want to reduce costs and plan to write to Ecclestone.
Although Ciscar concedes that sporting events such as the grand prix and the America's Cup, which Valencia hosted in 2007, provide "significant value", he said that they are "under full and absolute review" and "are not viable as they have been until now".
But he also admitted to El Pais that it would be difficult to cancel the contract as the financial penalty is likely to be higher.
He added: "I have not had time to read the contract and do not know the impact it would have [if the deal is cancelled]."
With some races reputedly under threat as Ecclestone expands the F1 calendar away from its traditional European heartland, one suggestion is that Valencia could share the Spanish Grand Prix with Barcelona.
Hockenheim and the Nurburgring already co-host the German Grand Prix and there is also talk of the cash-strapped Belgian GP alternating with a new race in France.
