Valencia is the latest addition to Formula 1's calendar and its grand prix is already being referred to as the sister race to the famous street race in Monaco

Valencia is no stranger to F1: McLaren held its 2007 launch at the Spanish city earlier this year.

Long a testing venue for F1 with its Circuito Ricardo Tormo, Valencia will host the European Grand Prix beginning August 2008, after landing a seven-year GP deal with F1 organiser Bernie Ecclestone. The race, will be held on a street course to be set up overlooking the Mediterranean sea, around a port which hosted the America's Cup yachting competition.

The announcement means Spain, homeland of reigning double world champion Fernando Alonso, will have two annual races at least through 2011, when Barcelona's current deal to host the Spanish Grand Prix expires.