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Imola's legal action over government backing of the deal to keep Formula 1's Italian Grand Prix at Monza has been withdrawn, paving the way for a resolution.

In September, Monza officials announced that a new three-year deal to keep the race through to 2019 had been secured, but admitted the contract had not yet been signed.

Imola took legal action as it felt it was not legitimate that Automobile club d'Italia awarded government backing to Monza and not Imola, to help fund an Italian GP beyond this year.

A court hearing was set for October 26 to assess the case, but this was cancelled when the objection was withdrawn.

The decision will allow Monza to continue talks with F1 boss Bernie Ecclestone with the aim of getting a deal sorted in the coming weeks.

A Monza source told Autosport: "Imola withdrew its objection against Monza and so the court case scheduled for October 26 did not go ahead.

"This leaves the way open for Monza to continue negotiations with Formula One Management to secure the future of Monza as a Formula 1 venue.

"We are confident that matters will be concluded before the 2017 calendar is confirmed in early December."