This season’s Malaysian Grand Prix will be the last after organisers confirmed they will scrap the Formula One race due to dwindling ticket sales and a lack of interest compared to the cost of hosting the event.

Malaysia’s tourism minister hinted last November that they were looking to drop the grand prix once the current contract expires next year, with the Malaysian Prime Minstser, Najib Razak, confirmed that the race will no longer be staged at Sepang.

"The Cabinet has agreed to end the contract for hosting the Formula One race starting 2018 after considering lowering returns to the country compared to the cost of hosting the championships," Mr Razak said in a statement on Friday.

After making the announcement, Liberty Media - Fomrula One's new owners - confirmed that an agreement has been reached to scrap the race a year earlier than planned, meaning this season's Grand Prix will be the last. However, F1 commercial boss Sean Bratches, who announced the decision, also confirmed that the German Grand Prix will be back on the calendar next season, along with the returning French Grand Prix.

The loss of the Malaysian Grand Prix should not impact on interest in F1 from Asia, given there remains races in Japan, Singapore, Azerbaijan and this weekend’s Chinese Grand Prix. However, it will come as a blow to the quality of racing offered from Formula One given that grand prixs at Sepang have provide plenty of thrills and controversy, be it through the unpredictable weather, wide track that aids overtaking or the infamous “multi-21” clash between former Red Bull teammates Mark Webber and Sebastian Vettel.

Chinese Grand Prix 2017 in pictures Show all 25 1 /25 Chinese Grand Prix 2017 in pictures Chinese Grand Prix 2017 in pictures Chinese Grand Prix Lewis Hamilton celebrates winning the Chinese Grand Prix Getty Chinese Grand Prix 2017 in pictures Chinese Grand Prix Hamilton crosses the finish line to take victory in the Chinese Grand Prix Getty Chinese Grand Prix 2017 in pictures Chinese Grand Prix Max Verstappen was able to hold off Daniel Ricciardo in a late intra-Red Bull challenge Getty Chinese Grand Prix 2017 in pictures Chinese Grand Prix Hamilton controlled the race form the front as he led every lap Reuters Chinese Grand Prix 2017 in pictures Chinese Grand Prix Kimi Raikkonen struggled as he was passed by Vettel, Verstappen and Ricciardo Getty Chinese Grand Prix 2017 in pictures Chinese Grand Prix Max Verstappen lit up Shanghai by passing nine cars on the first lap of the Chinese Grand Prix EPA Chinese Grand Prix 2017 in pictures Chinese Grand Prix Valterri Bottas had to fight back through the field after spinning behind the safety car Getty Chinese Grand Prix 2017 in pictures Chinese Grand Prix Lewis Hamilton took the 54th Grand Prix victory of his career Getty Chinese Grand Prix 2017 in pictures Chinese Grand Prix Antonio Giovinazzi lost control of his Sauber on the start-finish straight Getty Chinese Grand Prix 2017 in pictures Chinese Grand Prix Anonio Giovinazzi climbs out of his Sauber after crashing early on Getty Chinese Grand Prix 2017 in pictures Chinese Grand Prix Lance Stroll was too overeager on the opening lap and paid the price Getty Chinese Grand Prix 2017 in pictures Chinese Grand Prix Sebastian Vettel saw his shot at Lewis Hamilton robbed by the safety car Getty Chinese Grand Prix 2017 in pictures Chinese Grand Prix The start of the Chinese Grand Prix saw the rare sight of a standing grid in wet conditions Getty Chinese Grand Prix 2017 in pictures Saturday qualifying Hamilton celebrates after putting his Mercedes on pole position AFP Chinese Grand Prix 2017 in pictures Saturday qualifying Hamilton qualified for the second Grand Prix in succession. Getty Chinese Grand Prix 2017 in pictures Friday second practice Lewis Hamilton took to the track to sign caps and throw them to fans after practice was cancelled Getty Chinese Grand Prix 2017 in pictures Friday second practice Lewis Hamilton tweeted his ideas for how Formula One could be improved through a shorter weekend Getty Chinese Grand Prix 2017 in pictures Friday First Practice Max Verstappen set the fastest time in first practice. Getty Chinese Grand Prix 2017 in pictures Friday First Practice Lewis Hamilton chose not to set a time despite taking to the track. Getty Chinese Grand Prix 2017 in pictures Friday First Practice Fernando Alonso ended the session in seventh place for McLaren. Getty Chinese Grand Prix 2017 in pictures Friday First Practice Felipe Massa navigates his way through the rain. Getty Chinese Grand Prix 2017 in pictures Friday First Practice Nico Hulkenberg spun out of first practice. Getty Chinese Grand Prix 2017 in pictures Friday First Practice Max Verstappen was more then 1.5 seconds quicker than any other driver in first practice. Getty Chinese Grand Prix 2017 in pictures Friday First Practice Stoffel Vandoorne wait to leave the pits. Getty Chinese Grand Prix 2017 in pictures Friday First Practice Felipe Massa sits and waits on the Williams pit wall as the rain continues to fall. Getty

Part of the reason behind scrapping the race is the impact on falling oil prices on state oil and gas firm, Petronas, the title sponsor of the Grand Prix. However, Petronas will continue their sponsorship of reigning Formula One world champions Mercedes as part of its marketing strategy beyond 2018.

This year’s Malaysian Grand Prix takes place on 17 September, little more than a month before the Malaysian MotoGP race that attracts far bigger crowds and a better return on ticket sales.