Bernie Ecclestone and Silverstone will reach an agreement to save the British Grand Prix and allow Jenson Button and new McLaren team-mate Lewis Hamilton to race in front of their home fans next summer.

That was the belief expressed today by Sir Jackie Stewart, the Formula One legend and former president of the British Racing Drivers' Club (BRDC) who own Silverstone.

Talks between Ecclestone, who promotes the world championship, and officials representing the BRDC had already started last month with the aim of keeping Britain's round of the title chase at Silverstone, it's permanent home since 1987.

It is understood the BRDC are willing to pay up to £12million to stage the race in 2010, but they insist they cannot afford the above inflation 'escalator' that would increase the licence fee every season after that.

Stewart said: "I don't think they are that far away from a financial figure.

"They have to keep the race. It would be a major error of judgement if Bernie was to take it away purely for financial reasons.

"Silverstone is not a rich operation. I don't think Bernie will want to see this grand prix disappear. He is British, and I think he does have some loyalty to the United Kingdom."

It was announced last night that the company that had sought to take the British Grand Prix to Donington Park had gone into administration.