Auckland council has decided to bring the Australian V8 Supercar series to the region for the next five years.
Councillors on Thursday accepted that the economic benefits far outweigh the ten million dollar cost to ratepayers.
The decision followed several hours of debate, with councillors questioning the financial risks.
Hamilton city council lost $37 million hosting the race.
Auckland's deputy mayor Penny Hulse says this time it is the Australian promoters who will carry the risk of rising costs.
The Government will contribute $2.2 million to help upgrade the circuit at Pukekohe.
The council's event agency forecasts that more than 21,000 foreign or out-of-town visitors will attend the event, contributing $7 million each year to the local economy.