The Victorian government used a statement announcing the contract extension to attack its northern rival, New South Wales (NSW).
"The latest contract extension is a humiliating blow for the New South Wales Major Events Minister Ian Macdonald who said NSW would steal Victoria’s major events including the Formula One Grand Prix, Superbikes World Championships and the MotoGP - all now signed to long-term contracts in Victoria," Victorian Tourism and Major Events Minister Tim Holding said.
"I think the big difference is that you go to Sydney once and you have seen it all, but you can come to Melbourne four times each year and get a totally different experience which is why people keep coming back."
Last year’s event, won by Australian Casey Stoner, was watched by about 105,000 people.
The Motorcycle Grand Prix will mark its 22nd year in Victoria in 2016.
Phillip Island is an Australian island located about 140km away from Melbourne, Victoria.
Victoria is the second most populous state in Australia.
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