Jun.23 (GMM) Despite recent speculation about a new contract for the Australian grand prix, the promoting state government insists that a deal is still not in place.

The race just south of the Victorian capital Melbourne has become controversial in recent times due to rising costs.

The government has also ruled out Bernie Ecclestone's demands for a night race in the future, with the current contract set to expire in 2010.

But despite reports that a new deal through 2015 is now all but sealed, Victorian premier John Brumby on Monday said negotiations have not finished yet.

"I'd hope that we can resolve this in the not too distant future," he said, according to the local news agency AAP.

"Our aim in relation to these negotiations was to get them concluded before the end of the year. We're making progress. I think that timetable has shifted forward," he added.

Australian Grand Prix Corporation (AGPC) chairman Ron Walker last week met with Ecclestone in London.

Brumby said: "It's no secret we have been having discussions. We haven't concluded those discussions, we'd like to get an agreement going forward but it's got to be the right deal for our state, it's got to provide value for money."