Donington Park will have a £5m facelift over the next 12 months to ensure that it remains on the MotoGP calendar.
Valentino Rossi (centre) won the last British MotoGP
The Leicestershire circuit, which has a contract to host the British Grand Prix until 2009, plans to replace the outdated pits and paddock buildings.
Donington has hosted Britain's MotoGP round since 1987, as well as Formula One's European Grand Prix in 1993.
"Our current facilities are no longer suitable for staging major events," said managing director Brian Pallett.
The improvements are scheduled for completion before the start of the 2006 season.