A planned $650 million formula one-style circuit near Australia's famous Gold Coast could pose a real challenge to the status of the current GP in Melbourne.

Local media sources say the proposed 6km track at Nowell, to be penned by renowned F1 circuit designer Hermann Tilke subject to a government land planning review, would be equipped with infrastructure for night racing; a concept being championed for the region by the sport's supremo Bernie Ecclestone.

The news of Queensland's possible bid for the Australian GP comes after a sustained period of criticism about the cost of the Melbourne race within the rival state of Victoria.

"If Mr Ecclestone decides that Queensland is a better place to host a formula one race, then that's where it will go," Australian Grand Prix Corporation chairman Ron Walker told the Herald Sun newspaper.

The Gold Coast project is being headed by Ron Brown, who intends the site to also host Australia's round of the World Rally championship next year.

He said: "We are not about stealing events from people, but if the grand prix people want to talk then we would welcome that."

Source: GMM