The premier of rival Australian state New South Wales has expressed interest in poaching the embattled Australian Grand Prix from Melbourne.

Victorian premier John Brumby is believed reluctant to pen a contract to keep the race at Albert Park beyond 2010 on similar terms, as F1 supremo Bernie Ecclestone warns that other countries are likely to occupy Australia's annual calendar slot in the future.

New South Wales premier Morris Iemma told Australian reporters on Monday that if Formula One moved away from Melbourne, he might be interested in making a bid for a Sydney race.

"If it comes up in 2010 for the right price and the right deal, Sydney is the right city," he said.

Iemma's government recently established 'Events NSW'; a body with a budget of $85 million over three years to bring big events back to the state.