Turkish Automobile Federation chief Mumtaz Tahincioglu said: "Formula One would bring economic advantages to Turkey."

He was quoted on the Turkish government's sports department website as saying: "We will realise this project in Istanbul."

Tahinciolgu said the federation was working with private sector sponsors to raise the $60m (�44m) necessary to build a suitable circuit.

He claimed the federation was in discussions about the project with F1's ruling body the International Automobile Federation (FIA), which would require a $10m (�7.2m) guarantee for the plan to go ahead.

"FIA looks on this project very warmly," he said. "But somehow Turkey has not taken this project to heart. My aim is to take on this project and overcome all obstacles."

Tahincioglu said Turkey's ban on tobacco advertising should not be an obstacle since there are already similar bans in countries that currently host F1.

The FIA is keen to have a Grand Prix in the eastern Mediterranean or Middle East, with Cairo, Dubai and Beirut other possible venues.

Plans for a circuit in the Lebanese capital were announced in June.