Scot Colin McRae escaped a ban but was fined

Motorsport's world governing body confirmed the news an hour after it had been announced by Welsh Secretary Peter Hain, a big fan of rallying.

There were fears that the Federation Internationale de l'Automobile (FIA) could pull the plug after a police crackdown on competitors speeding between stages.

But the FIA said this year's rally in September would have full world championship status after discussions in Geneva, Switzerland.

Mr Hain said: "I'm delighted that the Wales Rally GB will now proceed and that we have managed to get past these speeding hiccups."

The sport was angered after 17 rally drivers were fined or banned for speeding offences in 2002.

It is important that everyone involved with Wales Rally GB respect the communities through which the event passes" Andrew Coe, Rally GB

They included Britain's former world champions Colin McRae and Richard Burns, who both had three penalty points imposed on their licences.

The convictions led the FIA to suggest that the roads of south Wales were unsuitable for a world championship event, and that it should be downgraded.

FIA president Max Mosley held talks with Mr Hain and new South Wales chief constable Barbara Wilding, who took up the post in January.

The Motor Sports Association, the governing body in Britain, also presented a report to the FIA in Geneva on road safety and the use of speed cameras.

The organisers of the rally said the number of safety camera incidents in the special stages had been reduced by 70% at last year's event with "constant communication throughout the year with the teams and spectators about the importance of respecting speed limits and taking care when driving through the local villages and towns."

Superior cars

Andrew Coe, chief executive of Rally GB said: "Wales provides a fantastic venue for an exciting event and it is important, therefore, that everyone involved with Wales Rally GB respect the communities through which the event passes."

Welsh former world champion Nicky Grist said drivers should not have been prosecuted.

"There is perhaps a speeding problem, not through necessarily the crews because they are the best drivers in the world in far superior cars, but perhaps with some of the spectators," said Mr Grist, from Abergavenny.

"OK, that needs to be controlled but in this case it got highly political and a lot of drivers - and high-profile drivers - were seriously fined in the process."

South Wales Police chief constable Barbara Wilding said that the FIA had acknowledged that the objective of the safety cameras was solely to manage safety on roads in the force area.

She said there had been a lot of "hype and erroneous comment" on the issue.

"I am pleased the FIA have based their decision on fact rather than this ill-informed comment, most of which has come from outside Wales."

The 2002 convictions led the FIA to suggest that the roads of south Wales were unsuitable for a world championship event, and that it should be downgraded.

In December 2003 the rally was granted a provisional place on the 2004 world championship pending the road safety review into the event.

It came after the FIA decided not to carry through a threat to downgrade the event to non-championship status.

But it did decide that its place would be subject to it approving a report on the roads.

Mr Hain said the event had brought an estimated �15m to the local economy over the last three years.

He said: "I am sure that all involved will be working flat out to ensure a safe and successful event for years to come."