Valencia is hoping to return to the F1 calendar in 2014.
The Spanish street race - recently the regular host of the European grand prix - has dropped off the sport's schedule for next season.
But it has been suggested that Spain's two F1 hosts, Valencia and Barcelona, will alternate the Spanish grand prix from now on.
Barcelona will as usual host the race next year, leaving open the possibility of a return for Valencia in 2014.
Lola Johnson, the Valencia tourism minister, said the government has "been working" on a possible alternation with Barcelona.
"It is a situation that is on the table," she is quoted by El Pais newspaper.
"It's a three-way scenario, with the bosses of formula one and the two organisers of the grands prix.
"The alternation is on the basis of the reorganisation of the contracts. The details are being worked on," Johnson said at the weekend, as Ferrari celebrated its end-of-season event at the Spanish port city's permanent circuit.