AUDITORS at Wales’ top public finance watchdog are to keep an eye on the Circuit of Wales project – but say there’s no reason to investigate it now.

A spokeswoman for the Wales Audit Office said on the basis of a preliminary review, the Auditor General for Wales concluded no further investigation of the Welsh Government’s initial grant of £2 million is warranted at present.

But she added: “In light of the possibility of the Welsh Government investing a further £30 million in the project, his staff are keeping a watching brief on the project as it progresses and will keep under consideration the need for any further investigation of public funding decisions.”

A spokesman for the Circuit of Wales said the project was “extremely pleased with this decision”.

He added: “This is yet another positive step for a development that will bring new investment and new opportunities to one of the poorest areas of the country and as such qualifies for support in encouraging economic activity.”

Reports have suggested that public money could be put into the circuit, possibly via the Welsh Government.

Britain’s F1 venue Silverstone recently wrote to the prime minister David Cameron, warning that such an injection of funds would amount to illegal state-aid.

It said that its own bid for financial support to secure the future of F1’s British Grand Prix had been denied on the basis that it would be classed as such.

But Circuit of Wales had said as the project was located in one of the poorest parts of the country, it qualifies for support.

At the time the Welsh Government said that, apart from an initial grant to fund the early stages of project development, there had not been a request or offer for funding support.