Northern Racing may diversify into the motor racing sector if a £600m redevelopment scheme for Silverstone is agreed by the track’s owners later this month.

If planning for the Northamptonshire-based circuit is approved, the Alternative Investment Market (AIM)-listed horse-racing group could gain commercial control of the site, alongside one of its main shareholders, developer St Modwen Properties.

In a statement to shareholders, Silverstone’s owners, the British Racing Drivers’ Club (BRDC) said that while nine expressions of interest to redevelop and operate the circuit had been received, Northern Racing had been chosen as the preferred bidder.

A BRDC extraordinary general meeting has been convened for 22 February.

Pending BRDC board member approval, Northern Racing will get a 25-year lease to operate the 800-acre property while St Modwen would upgrade the circuit as part of BRDC’s £600m redevelopment plans.

Silverstone’s modernisation has been spurred by Formula One promoter Bernie Ecclestone, who recently threatened to take the F1 contract away from the circuit, although he has since agreed to extend it until 2009. Details: www.brdc.co.uk