Plans have been drawn up for a motorsport complex which incorporates a five km F1-standard circuit at Avalon Airport.
Linfox executive Andrew Nicholls said Linfox is prepared to build a F1 circuit as long as the State Government can secure a 10-year extension of the contract for the AGP. At this stage the current contract expires in 2015.
"The advantages of the site are fairly obvious it is a good distance from many noise receptors and there is plenty of land," Mr Nicholls said."We have done the designs, but in the end, for it to go any further it would require government support."
With increasing pressure on the State Government to justify the cost of the Grand Prix with Government funding blowing out to $40 million.
Frank Costa, a produce giant said in the long term a motorsport complex at Avalon Airport would be more cost-effective and have the ability to provide a venue for other events throughout the year.
"I don't see any minuses personally because it is far enough away from other residents not to cause an issue with congestion and noise," he said."It would be another reason for people to come to Geelong and would create jobs. You would think it is something which should be looked at at least."
City of Greater Geelong Mayor John Mitchell said he believes there is an advantage to have the Grand Prix on a permanent track.
"It would definitely have to have some benefit to Geelong and an economic spin-off," he said.
Spokesman Peter Logan from the Save Albert Park group said the idea had merit and should be investigated further, the Government can no longer justify the $25 milion cost to prepare the Albert Park circuit each year.
"Motor racing should be conducted away from people so in that sense Avalon Airport is a good venue," he said."They are wasting an enormous amount of taxpayer money. If this proposal stacks up against the law, which Albert Park does not, it should be looked at."
Premier John Brumby has no plans to relocate the location of the Grand Prix.
"I saw the speculation about it but I think the GP itself, they're pretty happy with where they are so I don't think it has gone any further than that," he said."I can say that we're working closely with Lindsay Fox on a range of business investment proposals around the state."