Formula One will return to the Portuguese city of Portimao for the 2027 and 2028 seasons.
The Algarve International Circuit staged races in 2020 and 2021 amid disruption to the calendar caused by the coronavirus pandemic.
It will replace the Dutch Grand Prix – held at Zandvoort – on the schedule during the two-year agreement.
F1 president Stefano Domenicali said: "I'm delighted to see Portimao return to the Formula One calendar and for the sport to continue to ignite the passion of our incredible Portuguese fanbase.
"The circuit delivers on-track excitement from the first corner to the chequered flag, and its energy lifts fans out of their seats."
Britain’s Lewis Hamilton won at Portimao in 2020 en route to claiming the last of his seven world titles.
He topped the podium again the following year to surpass Michael Schumacher’s record of all-time wins before ultimately losing his crown to Max Verstappen.
The Portuguese Grand Prix, which was first held in Porto in 1958, was staged at Estoril from 1984 to 1996.
It was cancelled the following two years after renovation works at the circuit were not completed and remained absent from the calendar until 2020.
