The Hungarian sports ministry and Formula One driver Zsolt Baumgartner have decided to cancel a deal in which the state would have given him US$4 million (3.15 million euros) toward his participation in the 2004 Formula One season, ministry officials said yesterday.

　　Instead, the state-owned company managing the Hungaroring racetrack, where Hungary's Formula 1 race is held, will sign an advertising contract worth 60 million forints (US$285,000) with Baumgartner, who will race for the Minardi team.

　　Despite the change, Baumgartner will still be able to meet his payment obligations to Minardi, after the team extended the payment deadline until the end of the racing season, the driver's management said in a statement.

　　Minardi is among the smallest Formula One outfits, and drivers must pay for their place on the team.

　　In a deal announced last December, the Hungarian government would have made a capital investment of US$4 million in joint venture with Baumgartner, aimed to ensure the driver's place on the Minardi racing team.

　　While sports ministry officials said the new agreement was based on a mutual decision with the driver, Baumgartner's management claimed responsibility for the change in the sponsorship arrangement.

　　Baumgartner's management said they chose to cancel the deal after it became clear that "Hungarian public opinion was divided on the matter."

　　Those who criticized the government's decision to sponsor Baumgartner pointed to the large state budget deficit which has forced cuts in programs like housing loans. The new deal was the best way for the state to get a return on its investment, the sports ministry said.

　　"The higher ticket sales we expect at Hungaroring from Baumgartner's participation in the race will compensate for the sponsorship deal," said Viktor Szigetvari, the sports ministry spokesman.

　　Last month, Baumgartner's management launched what it says turned out to be a successful appeal for donations from fans and small companies after another major sponsor also withdrew its support. No sums were disclosed.

　　Meanwhile, the mayor of Imola says he will meet Formula One chief Bernie Ecclestone next week in a bid to save the San Marino Grand Prix's place in the calendar. Ecclestone has said the race would be removed from the circuit next season.

　　Imola Mayor Massimo Marchignoli told the daily Gazzetta dello Sport yesterday he had spoken to Ecclestone and been told the matter was still to be decided.

　　"I have had a discussion on the telephone with Bernie Ecclestone. He told me that he considers the question to be still open and that there is a chance to continue to host the grand prix also next year," the newspaper quoted Marchignoli as saying.