A council has said crucial paperwork needs to be signed by 30 June or Donington Park's £100m track revamp cannot go ahead.
North West Leicestershire District Council granted permission for upgrades to the track, due to stage the 2010 British Grand Prix, four months ago.
Owner Tom Wheatcroft issued legal proceedings against lease holder Simon Gillett regarding unpaid back rent.
The council say permission will be revoked if the dispute is not resolved.
'Trials and tribulations'
Mr Gillett has told BBC Sport the 2010 British Grand Prix will go ahead.
"We are 110% committed to making this happen and 100% confident that it will.
"We have our little trials and tribulations but we are still confident the Grand Prix is coming to Donington next year," he said.
The authority says a legal document, known as a section 106 agreement, needs to be signed by both parties ahead of the deadline.
Leader of the council, Councillor Richard Blunt, said: "I think in lots of major peace accords, the agreement gets done at the last minute and we're in that same process here in a small way.
"We're trying to get this agreement signed and we believe it will happen."
Donington Park secured a 10-year contract to host the British GP at the expense of current hosts Silverstone and is due to stage its first Formula 1 Grand Prix since 1993 in July next year.
Silverstone, which is owned by the British Racing Drivers' Club (BRDC), stalled over signing a new deal and F1 commercial rights holder Bernie Ecclestone was impressed by Mr Gillett's plans to redevelop Donington.
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