AP Photo / Yam G-Jun.

Melbourne - Grand prix motorcycle racing will return to Indonesia for the first time in over 20 years when the island of Lombok plays host to a round of MotoGP in 2021, organisers said on Saturday.

Commercial rights holder DORNA Group said it had signed an agreement with the state-owned Indonesia Tourism Development Corporation (ITDC) to host the event on the tropical island near Bali.

Lombok will also host a race in the Superbike world championship in 2021, DORNA said in a media release.

"What a unique project this will be, having an urban, world class circuit in a country where MotoGP has such a huge following," DORNA chief executive Carmelo Ezpeleta said.

"Indonesia is a key market for us with a considerable percentage of motorsport fans living here and the MotoGP atmosphere will be even stronger once the circuit is complete."

The races will be held on a new street circuit at Mandalika, a special economic zone at the south of the island, in a bid to boost tourism, the ITDC told local media.

Indonesia hosted grand prix races in 1996 and 1997 at the Sentul International Circuit in West Java.

Reuters