Staff at the East Midlands circuit were today told that DVLL, the company that owns and operates the venue, has been put into administration with immediate effect, with administrators now looking to sell the circuit as a going concern.

The company, which has been dogged by financial problems, lost a 17-year-contract to host the British Formula One Grand Prix after failing to raise £135m from a bond issue to bring facilities up to F1 standard.

But administrators do not believe that the circuit’s 78-year history could come to an end.

Administrator Nigel Price has claimed he is seeking a buyer “with vision” who could still bring Formula One to the venue.

Mr Price said: “This need not be the end of Formula One racing at Donington. It still remains a fantastic location.”

He added: “We are certainly hopeful that a 2011 Grand Prix could take place at the site.

“We are looking for a purchaser for the business and the potential opportunity to bring Formula One to this part of the East Midlands by funding the work that needs to be carried out to the circuit.

“It needs people of vision to get the dream to the starting grid.”

After agreeing a deal to host F1 last year, the circuit lost its contract to host MotoGP, which will now take place at Silverstone. It is unclear as to what effect that the administration will have on events currently scheduled there, including the British Superbike Championship and the British round of the World Superbike Championship.