The Indy car race will no longer run on the Gold Coast after negotiations with local government broke down.
After 18 years, the race will be replaced with the A1 Grand Prix series to take its place alongside the V8s next October.
Premier Anna Bligh says negotiations with the Indy Racing League had broken down due to insurmountable hurdles over funding and dates.
A new five-year deal had been reached with the A1GP for the Gold Coast to join its race calendar that includes Great Britain, China, Mexico, Portugal, New Zealand and South Africa.
The race has been held on the Gold Coast since 1991 and the V8 Supercars series has already committed to next year's rally.