Valencia has been chosen as the venue for the 33rd America's Cup race in 2009, organisers said on Thursday.

"With the 32nd America's Cup we set out to construct an important social project and we did just that," ACM (America's Cup Management) chief executive Michel Bonnefous told a news conference.

"Some six million people visited us and it was the most competitive America's Cup in history. We wanted to continue with those emotions and that is why I want to announce that Valencia will be the venue of the 33rd America's Cup."

The Mediterranean port staged the 32nd edition of yachting's most prestigious race which was won by Swiss defenders Alinghi 5-2 against challengers Team New Zealand at the start of July.

Apart from the original regatta in 1851, it will be only the second time that the race has been held in European waters.

Valencia were strong favourites after their successful staging of this year's race and the enthusiastic backing of the local and regional government.

Spanish daily El Mundo reported on Tuesday that Valencia had agreed to pay around 105 million euros ($NZ179 million) to stage the event, 15 million more than they paid for the 2007 race.

Despite problems with delays and postponements because of the wind, Valencia was a popular venue with the teams that took part in this year's race and the state-of-the art facilities in the port area won widespread praise.

"When we set out to hold the 32nd America's Cup we committed ourselves to hold the best ever America's Cup and we did just that," said city mayor Rita Barbera. "This has been the best venue in the history of the America's Cup."

The city has also closed a seven-year deal to hold a Formula One grand prix on a brand new urban circuit from 2008 and will stage the world indoor athletics championships next March.