Metro will offer current operator Tony Formosa a 5-year-contract to continue running the fairgrounds racetrack, bypassing a bid from one of the world's preeminent racing companies.

Formosa has run the fairgrounds racetrack since 2010, and told The Tennessean earlier this year he wanted a longer contract. Formosa said he wanted a 7- or 10-year deal after running on year-to-year contracts.

The Metro procurement office sent a letter to Formosa on Thursday afternoon alerting him to its intent to award him the contract.

"This is probably one of the happiest days of my life," Formosa said, adding that despite the rainy weather in Nashville on Thursday, it felt like a "sun shiny day" to him. "Now we're really going to be able to make something happen."

► Related: Bristol Motor Speedway owner makes play to run Nashville fairgrounds racetrack

Speedway Motorsports, the publicly-traded company that owns Bristol Motor Speedway and operates seven other NASCAR tracks, also bid on the contract.

Formosa said he was aware of the competition from Speedway Motorsports. Formosa's bid had the early endorsement of Nashville businessmen Scott Borchetta, Bill Freeman and Darrell Waltrip, who is also a legendary former NASCAR driver.

Waltrip also backed Speedway Motorsports' bid on Wednesday, and Dale Earnhardt Jr. endorsed the company's efforts to operate the 5/8 mile track in a tweet.

"Honestly, I thought that if anyone besides me got it, it would be them," Formosa said.

The procurement panel downgraded Speedway Motorsports' bid because the company wanted a 30-year deal and for Metro to fully fund capital renovations.

By choosing Formosa, the city renews its relationship with a familiar partner. But, Metro also bypasses on the considerable resources and connections that Speedway Motorsports has.

Earlier this year, Formosa said he would put capital investments into the 59-year-old facility if he landed a long-term deal. As part of upgrades for the entire 117-acre property, Metro has already committed some funds to improve the grandstands.

The deal still requires approval of the Metro fair board.

Alexander Racing and Alabama Track Ventures also bid on the contract.

Reach Nate Rau at 615-259-8094 and nrau@tennessean.com. Follow him on Twitter @tnnaterau.