Speedway Motorsports has struck a deal with fairgrounds racetrack operator Tony Formosa that paves the way for NASCAR's return to Nashville and for weekly racing to remain at the venerable Metro-owned short track.

The deal still must be approved by the Metro Board of Fair Commissioners. But while some details still need to be worked out, the agreement between Speedway Motorsports and Formosa is the clearest sign that NASCAR could be returning to Nashville.

Terms of the agreement between Formosa and Speedway Motorsports, led by CEO Marcus Smith, were not released, but both sides confirmed the agreement would allow Formosa to continue holding up to eight of his already-established races annually at the fairgrounds.

“Tony and our team both see the same bright future for Fairgrounds Speedway," said Jerry Caldwell, executive vice president and general manager of Bristol Motor Speedway, which is owned by Speedway Motorsports. "Nashville has a special reputation as one of the most exciting tracks in the history of motorsports, and the region has a remarkably large and passionate fan base.

More:Bristol Motor Speedway owner in talks about 2 NASCAR races at Nashville fairgrounds

"The motorsports industry — the sanctioning bodies, drivers and race teams — is excited about Nashville’s potential to be a regular site for major events. With Metro supportive of that vision, we are eager to start working tomorrow with the city, Tony and other stakeholders at the Fairgrounds and beyond, to develop a first-class racing facility and program.”

Formosa told the fair board in October that discussions have centered around a NASCAR Xfinity Series race and a NASCAR Camping World Truck Series race at the fairgrounds.

It remains unclear how soon races may start at the site.

More:Nashville MLS stadium project wins final Metro Council approval

It's a remarkable turnaround for the 114-year-old racetrack that was nearly demolished by Mayor Karl Dean's administration, and redeveloped along with the entire fairgrounds property, just seven years ago.

Instead the old fairgrounds property is poised to emerge as a professional sports megaplex. Earlier this year, the city approved financing for a $275 million Major League Soccer stadium project on the fairgrounds site next to the speedway. The MLS stadium is scheduled to open in 2021.

“This is terrific news for fans of racing and drivers all across the country and will bring a brighter future for Nashville Fairgrounds,” Formosa said. “I’m excited to work with Bruton and Marcus Smith and the Bristol team, who I feel will bring this historic facility back to where it belongs. Today marks an exciting new beginning for the Fairgrounds Speedway Nashville.”

Construction on a new expo center facility at the fairgrounds, as part of an MLS stadium plan the Metro Council approved in September, began last month.

More:Bristol Motor Speedway owner meets with Nashville mayor to pitch return of NASCAR to fairgrounds

The aging Fairgrounds Speedway, which has received minor cosmetic improvements over the past year, would likely need substantially more upgrades to accommodate NASCAR. That includes lighting specifications to broadcast events on television, safety measures for the track's walls and sound barriers.

Metro has already set aside $1.7 million for future improvements to the speedway's grandstands. Further upgrades to the speedway are unclear and would need to be determined by Metro. They could also be the subject of further negotiations between the city and Speedway Motorsports.

The latter have the resources and experience to turnaround the fairgrounds racetrack. The company owns eight NASCAR tracks — including Bristol Motor Speedway.

Nashville appealed to Speedway Motorsports because of short-track racing's increasing popularity with fans and the city's status as a premiere entertainment and tourism destination.

NASCAR racing legend Darrell Waltrip, who resides in Franklin, called the deal "a win win for everybody: the fans, the track, the Formosas and for Marcus and SMI."

"I believe with the help of SMI the track can return to its glory days. I couldn’t be more pleased and excited for the future of the track," said Waltrip.

More:Nashville fairgrounds prepares to close main connector road for MLS stadium overhaul

Music Row executive and racing entrepreneur Scott Borchetta is among the business leaders who backed the deal.

Nashville Mayor David Briley, who met with Smith and other Speedway Motorsports executives earlier this year, said in September that he was "generally supportive" of a public-private partnership at the racetrack and was looking at options to upgrade the facility.

"The fairgrounds has tremendous community support," Briley said in a statement Wednesday. "I look forward to exploring how this news fits into the overall plan that Metro Council has approved for the MLS stadium, mixed-use development and refurbished Expo Center complex."

Briley's administration has been in talks with Speedway Motorsports since then, but a hurdle still remained: Formosa won a public bidding process last year to run races at the fairgrounds.

Formosa has run local races at the fairgrounds since 2010. When bidding for the contract last year, Formosa said he'd like to see NASCAR return to Nashville.

More:Judge denies injunction seeking to stop fairgrounds overhaul for Nashville MLS stadium

The Metro fair board meets next on Jan. 8.

The fairgrounds area's Councilman Colby Sledge — who has been sympathetic to noise complaints from neighbors about the speedway over the years — said he wants to reserve judgement on the NASCAR deal until terms are released. He said any change to Formosa's racing contract should keep the same cap of 10 annual races allowed at the fairgrounds.

"The fairgrounds is undergoing enormous amounts of change," Sledge said. "This is another possible change there. But we just have to make sure it's done in a way that benefits everyone around (the fairgrounds) as well."

Fair board chairman Ned Horton said the city is in the process of reviewing parking accommodations for the transformed fairgrounds, including the MLS stadium and speedway.

"There's some good momentum there," Horton said of reviving NASCAR at the fairgrounds. "Hopefully, we'll get this all worked out design-wise, where everybody's going to park — getting in and out of there, that's a concern for everyone — but it's very exciting."

WANT MORE STORIES LIKE THIS:Sign up for breaking news from Tennessean.com delivered immediately to your inbox.

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