A second tobacco giant has announced a Formula 1 sponsorship deal before the Melbourne Grand Prix, sparking fears big cigarette companies are teaming up with racing to flout advertising bans at motorsports events.

British American Tobacco this week announced it had signed a deal with McLaren, which has several purposes.

McLaren drivers Carlos Sainz and Lando Norris in racegear with the 'A Better Tomorrow' slogan

BAT will use McLaren's F1 cars to advertise its "A Better Tomorrow" initiative, which will promote "less risky" tobacco and nicotine products. But it will also work closely with McLaren Applied Technologies to collaborate and share technology "expertise" including batteries and design.

BAT chief marketing officer Kingsley Wheaton said the partnership would allow the company to "drive greater resonance" of its products, including e-cigarettes.