Australia [Images] is to replace its annual Indy motor race for a round of the A1 Grand Prix series.

Local government officials said they had been forced to scrap the Indy event after failing to reach an agreement with organisers about what time of year to hold the race.

Queensland's Gold Coast normally holds its race in October but Indy officials wanted to switch it to March, at the same time as the Australian Formula One Grand Prix in Melbourne and the start of the Australian football seasons.

"They have an expanded series of events and our Indy clashes with the early part of the American Football season," Queensland state Sports Minister Judy Spence told reporters on Tuesday.

"[But] moving our race to March as they had requested was not an option."

Queensland state premier Anna Bligh said the government has reached an agreement with organisers of the A1 GP to stage a race at the Gold Coast for the next five years.

"The A1GP is a world-class racing series with an action packed race calendar that includes Great Britain, China, Mexico, Portugal, Malaysia, New Zealand [Images], Indonesia, South Africa [Images] and the Netherlands," Bligh said.