TPARIS (Reuters) -- The Magny-Cours circuit, which has hosted the French Grand Prix in recent years, has signed a five-year contract with Formula One chief Bernie Ecclestone to stage the event from 2005 to 2009.

But circuit chief Roland Hodel told radio RMC-Info the race would definitely "take a break" in 2004.

"We're taking a break in 2004, in full agreement with Bernie Ecclestone and we have signed a contract from 2005 to 2009 with a possibility to renew it for five more years," Hodel said.

The French sports minister earlier said a final decision had not been taken to cancel next year's French Grand Prix, due to take place at the Magny-Cours circuit in July.

On Friday, a local government official said the race had been cancelled because of financial problems. Marcel Charmant, president of the local council in the Nievre region, said the company running Magny-Cours could not pay Ecclestone the guarantees he required ahead of the race.