The Indian Olympic Association says it has reached an agreement with Formula One boss Bernie Ecclestone to stage a Grand Prix in New Delhi from 2009.
Ecclestone has been keen to take Formula One to India
IOA president Suresh Kalmadi said the agreement was preliminary and conditional on having a venue approved.
The city does not currently have a racing track.
"We have received a letter in this regard from Bernie Ecclestone," said Kalmadi. "The IOA will be the promoter, the first event will be held in 2009."
He added: We are looking to identify suitable land for a world-class track. It's a tough task, but we're hoping to meet the challenge."
Should the Indian GP organisers meet the demands of Formula One Management (FOM), the race would become the fifth new venue to be added to the calendar in recent months.
Valencia and Singapore will hold races for the first time in 2008, while Abu
Dhabi will enter the fray in 2009 followed by South Korea a year later.
There is no indication at present which of the current GPs would make way for the new events.
New Delhi is preparing to host the Commonwealth Games in 2010.
The city, however, lost its bid to organise the 2014 Asian Games and opted out of the race for the 2016 Olympics.