Laguna returns as another city bites dust.

The Champ Car World Series' uncertain future appeared to be stabilised slightly overnight with the announcement that Laguna Seca will return to the schedule in 2008, albeit at the expense of another of the championship's much-vaunted street courses.

After the recent demise of Denver and Phoenix, and with doubts being cast over Las Vegas, the 2008 calendar will now be without San Jose after organisers claimed that it was not possible to stage a third running of the Californian event next season.

Unlike Denver and Phoenix - where finance was cited as the reason for the races being cancelled - those behind the Grand Prix of San Jose have allegedly informed Champ Car that ongoing residential developments in and around the 1.5-mile downtown track would hamper the 2008 event. New housing developments on Balbach Street would affect the back straightaway, they claimed, while upcoming construction in the Boston Properties lot would mean the loss of the race's main 'Gold Grandstands' on Almaden Boulevard.

"The reality of racing on a temporary street circuit is that change happens continuously, and this is especially true in a dynamic and growing city centre like downtown San Jose," said Grand Prix president Dale Jantzen.

Determined to remain in northern California, championship organisers have reacted to the revelation by arranging a return to Laguna Seca, although a date will not be confirmed until the calendar is more populated.

"We're pleased that Champ Car will be able to maintain a strong event in northern California," said president and CEO Steve Johnson, "While it's always tough to leave one city for another, in this case, it makes sense strategically for us and works for San Jose, given the ongoing developments of their downtown. We enjoyed three great years in San Jose, and certainly anticipate that the fans there will head south to enjoy Champ Car racing at the beautiful Monterey Peninsula's Mazda Raceway circuit."

Considered one of the finest permanent road courses in North America, the 2.238-mile Monterey Peninsula venue will host its 23rd Champ Car event next year, but its first for three years, although the final pre-season test of 2007 was held there.

"Needless to say, we are thrilled to announce during our 50th anniversary season that Monterey Peninsula's Mazda Raceway Laguna Seca will once again host a Champ Car World Series event," said circuit CEO Gill Campbell, "Our fans loved the 2007 pre-season testing, and they will certainly enjoy Champ Car's return with a race next year. Our mutual affiliation with Mazda made this relationship a natural one for us, and we all share in the excitement. While we look forward to announcing our entire 2008 schedule soon, we wanted to share this exciting news with our fans as soon as possible."

The Laguna Seca announcement is the first of several calendar moves expected in the coming months.