Formula E will return to Battersea Park for the final time this summer after organisers came closer to realising their dream of a central London street rally.
Formula E received permission from Wandsworth Council to continue the event for two more years, after councillors rejected the opportunity to use the contract's first break clause in the five year agreement.
James Jackson, who is blind, is guided across the park by a workman
Formula E will drop their contract in Wandsworth to have a street race around some of Central London's biggest landmarks, after entering negotiations with City Hall and its new mayor, Sadiq Khan.
The council has received £2.85m to date, including compensation for the event not being held in 2017.
The contract's worth was previously withheld from the public domain, with councillors only disclosing that the park would received £200,000 for every year it hosted the race.
Campaigners had launched an application for judicial review in the High Court, and their case was due to be heard on May 24 and 25, but this action has now been dropped.
James Jackson, a blind author who was launching the legal action.
In a statement on the Save Battersea Park website, the group said: "A current action for Judicial Review is due to be heard in the High Court on May 24 and 25 between the claimant James Jackson and defendant Wandsworth Council with Formula E as an interested party.
"This action challenges the hosting of the Formula E Championship in Battersea Park.
"Mr Jackson supported by the Battersea Park Action Group is pleased to now announce that a satisfactory agreement has been reached over the future use of Battersea Park.
"Mr Jackson will now withdraw his Judicial Review action with his costs to date being met. The Championship this year will go ahead but further consideration will be given to future years.
"As required under the planning conditions for this year’s event, the park will be reinstated by Formula E to its original pre-March 2015 condition.
"Mr Jackson feels that the settlement reached represents a favourable outcome for all parties involved given the preparations already in hand for this year’s races as well as the obligation to reinstate the park."
Mr Jackson said: "I am delighted that a solution has been found; this is good for everyone."
According to the Save Battersea Park group, the details of the agreement between the group and Formula E are confidential.
Wandsworth's community services spokesman Councillor Jonathan Cook said: "Formula E has notified us that they will be holding their final races in Battersea Park this summer and that from 2017 onwards they will be seeking alternative locations. Our understanding is that this now includes the possibility of a street circuit in central London, which has always been their preferred option but was not previously possible.
"As a result we have secured a financial agreement with Formula E which includes a compensation package for loss of income in 2017. This means that the total amount the council will receive from Formula E for staging these racing events in the park has reached £2.85m.
"Some of this money has been spent on maintaining and improving Battersea Park, while the rest is helping to fund the vital frontline services that our residents rely on the most like services for vulnerable children, libraries, day centres for older people, support for disability groups and other important functions like fixing potholes and keeping our streets clean.
"I am proud it was this council that brought such a prestigious global event to London and I look forward to July's races which will be enjoyed by thousands of Londoners and Wandsworth residents alike. This council will continue to make sure that Battersea and all our other parks are used in ways which can benefit all our residents."
A spokesman for the Mayor of London said: "The Mayor wholeheartedly supports the concept of Formula E and the work it is doing to promote zero emissions and green technologies.
"He also understands the economic benefit that the hosting of major events can bring to the city and therefore intends to work with FIA Formula E to explore other sites in the capital that could host this event in 2017."
Formula E chief executive officer, Alejandro Agag, said: "We are very pleased that the London ePrix will go ahead as planned.
"We would like to thank everybody involved in helping to make the races in
Battersea Park such a success.
"We now look forward to finding a new home in London, using the streets and backdrop of one of the most famous and recognisable cities in the world."