The Malaysian Grand Prix will be dropped from the Formula 1 calendar next year, following a joint decision by F1 and the Malaysian government.

The decision comes following months of speculation following an announcement by the government of Malaysia that they will no longer fund an extension of the original deal that runs to the end of 2018.

The decision was made considering the high costs incurred in holding the event V’s low ticket sales at the Sepang circuit.

Following discussions with Liberty Media, the new F1 owners, a deal has been reached to drop the event after this years race. The Sepang event will be replaced by a German Grand Prix in 2018.