DONINGTON Park has confirmed that its hopes of staging the British Grand Prix have taken a blow.

Simon Gillett, who runs the Castle Donington circuit, held a meeting with a number of prospective investors on Monday to try to convince them to pledge the £135m needed to stage the race.

But this morning Mr Gillett's company Donington Ventures Leisure Limited confirmed that the £135m bond was unsuccessful.

A company spokesman said: "Despite higher than expected levels of interest and very positive early indications, the bond – which was launched with Citi Group last week – has failed to secure enough subscription ahead of today's deadline.

"The news dealt an unexpected blow to staff and management at the circuit, who still have a deadline of 12pm on Monday, October 26, to remedy a breach of contract with Formula 1 Rights Holder Bernie Ecclestone, in order to keep any plans for retaining the existing 17-year Formula 1 contract alive.

"Information regarding the circuit's future plans is not yet available, however the major focus is on providing security for the Leicestershire venue and all related parties, including staff and suppliers."

Work at Donington has begun, but extensive reconstruction is required to extend and widen the track, then build a new pit and paddock complex, media and medical centres.

This is the latest in a series of setbacks for the circuit.

Earlier in the month Formula 1 boss Bernie Ecclestone gave the circuit a final two-week ultimatum, which was due to end today.

Silverstone has made it clear that it is ready to step into the breach to save the British Grand Prix if Donington Park's plans fall through.