Government ministers have signed off on 35 billion Forints of funding for the work – around £103m or $136m – with the payments spread out over three stages of 5bn, 10bn and 20bn.

Hungary's minister of foreign affairs and trade Peter Szijjarto was present at last weekend's Grand Prix – where he enjoyed a taste of the sport with a ride in the F1 two-seater – and confirmed that the agreement had been reached with the circuit, which has a deal to host the race until 2026.

The venue has gone virtually unchanged since the first Grand Prix was held in 1986, and it has been clear for some years that a revamp was essential.

The first job will be the rebuilding of the main grandstands and public areas, with the plan being to create a modern stadium section running around the final corner and along the pit straight.

That work will start in late 2018, in preparation for the following year's Grand Prix. Construction of a new race control and pitlane complex will follow in 2020. There are also plans for a visitors' centre and museum.

"We have a plan now," Hungaroring President and CEO Zsolt Gyulay told Motorsport.com. "The government has decided. The minister has said it's guaranteed, it's 100 per cent sure. It was delayed, because we wanted to start in January, but this is government!

"At the end of August we'll start making the architectural designs. My plan is that we can start the rebuild at the end of 2018 until 2019.

"The first step is the outside, the stands, and the second one is inside the circuit, the pits, in 2020. Everything will be new. We will have more seats, like a modern stadium."

Gyulay said that he has already formed a good relationship with F1 CEO Chase Carey and his Liberty colleagues: "I think Mr. Carey is an absolute gentleman.

"We have a long contract, and I feel it's a little bit easier to work with them. We have to thank Bernie [Ecclestone] for everything, of course, but we can work with them easily."