Sydney hoping to lure F1 race away from Melbourne

Sydney is set to launch a bid to lure the Australian Grand Prix away from Melbourne, if New South Wales state premier Mike Baird is relected later month.

Officials close to the project believe it would provide an economic boost to the city, by having a street course with its famous landmarks in the background, whilst it's believed they could even race over the iconic Harbour Bridge.

"I believe we have sat back too long and let Melbourne take all the events it wants," Baird said on Friday.

"We've grown our own events, we've boosted the budget and we want the best events for this city. We'll do it on the basis that it brings economic benefits to this state."

Baird also noted that Rod McGeoch, who led Sydney's successful 2000 Olympic bid, would be in charge of drawing up plans for the race.

However Australian Grand Prix Corporation chairman Ron Walker has hit back at Baird and his team, saying the event has a contract with Melbourne until at least 2020.

"[Baird's] team of advisers have advised him very wrongly. We have a contract with [Bernie] Ecclestone until 2020 and we have another five-year option… so it's a long time before Sydney could even think about it," Walker told ABC television.