Qantas has been named as the new title sponsor for the Australian grand prix.

In the wake of ING's departure from the sport, it was feared that the Melbourne race would not locate a funding replacement for the Dutch bank.

The 2009 race at Albert Park recorded a controversial $40m loss.

"We greatly value the involvement of all our commercial sponsors -- their support reduces the cost of this event to the Victorian government," said major events minister Tim Holding.

The Australian Grand Prix Corporation on Wednesday said Qantas, whose association with F1 in the country dates back to the 80s, will be the naming sponsor in 2010.

"We are pleased to reaffirm our support for this global sporting event, reaching formula one fans worldwide," said Alan Joyce, chief executive of Australia's national airline.

Qantas was also the Australian GP title sponsor between 1997 and 2001.