Mallorca could replace Valencia on the F1 calendar © Sutton Images Enlarge

Plans for a Formula One race on the Spanish island of Mallorca are progressing, according to organisers.

Mid last year, it emerged that Llucmajor, a short drive from Mallorca's major Palma airport, was the likely site for the project, which its organisers were hoping would replace the European Grand Prix at Valencia. The German-language Mallorca Zeitung reports that organisers are now seeking investors to fund the first race in 2012, with the estimated cost at between €160-€200 million.

"The project would help not only the local community but give the whole island a tremendous economic boost," said Llucmajor mayor Joan Jaume.

The track's local designer Gabriel Palmer has been criticised for his inexperience, but he said he has consulted with the Ferrari team. "I have included their corrections in my current draft," said Palmer.

The head of the Balearic racing federation and mayor Jaume have already met with F1 chief executive Bernie Ecclestone, and F1 event guru Philippe Gurdjian has reportedly also been involved.

"Ecclestone was enthusiastic and encouraged us to pursue the project," said federation president Agustin Arbex.

He also revealed that September 2012 has been earmarked for the inaugural race date.