Mexico City will host high-altitude Formula One races for at least three more years after a contract extension was signed Wednesday.

"We are very excited to announce that the Mexico City Grand Prix will continue to be part of our calendar until 2028," F1 chief executive Stefano Domenicali said.

"Formula 1 is energy, passion and emotion, and every year the unique atmosphere created by our fans in Mexico City is one of the most incredible and energetic experiences of our championship," he added.

The Mexican capital "is the home of Formula 1," its mayor Clara Brugada said.

The Mexico City Grand Prix is expected to generate 21 billion pesos — about $1.1 billion — in 2025, Brugada said.

"The Grand Prix not only attracts motorsports fans, but also stimulates the local economy of this great city, strengthens the tourism infrastructure, and generates pride," she said.

Mexico City is more than 2,200 meters (7,200 feet) above sea level and the rarefied atmosphere has an effect on turbos, cooling systems and brakes as well as delivering less drag.

Formula One returned to Mexico City's Autodromo Hermanos Rodriguez racetrack in 2015 after a 23-year absence, to the delight of fans in the Latin American nation.

This year's Mexico City Grand Prix will be held 24-26 October.