Updated March 13, 2020 13:10:07

The Australian Formula 1 Grand Prix has been cancelled due to coronavirus concerns, but event organisers say they are hopeful they will manage to run the event "at some later stage".

Organisers made the decision following updated medical advice from Victoria's chief health officer.

At a press conference just before midday, Australian Grand Prix Corporation chairman Paul Little apologised to fans for the sudden cancellation.

"The health and safety and welfare of the teams and people, the community generally, has to take precedence … and we look forward to hopefully being able to run this event at some later stage," he said.

Organiser have said all ticket holders will receive a full refund.

Chase Carey, the chairman of Formula 1, said it had been a "fluid" and "challenging" situation.

"I do think we were trying to digest a lot of different information to make the right decision at the right time and I think we did that," he said.

Andrew Westacott, the CEO of AGPC, said they had been too busy dealing with the cancellation to turn their minds to how the event might be restaged in the future.

"I've learnt in the world of Formula 1 you never say never … we'll work through matters but we haven't started to think about future staging or anything like that.

"But it's clearly a normal topic of discussion which would happen in the fullness of time," he said.

Photo: Organisers have promised ticket holders a full refund. (AAP: Scott Barbour)

In an earlier statement, the organisers said racing officials including representatives from nine teams had met on Thursday night, after a member of the McLaren Racing team tested positive for the virus.

"Those discussions concluded with a majority view of the teams that the race should not go ahead," the statement said.

The decision to cancel the event was taken by Formula 1 and the FIA with the full support of the AGPC, the statement said.

Photo: Fans queued up to enter the racetrack before learning it would be cancelled. (ABC News: Simon Tucci)

"All parties took into consideration the huge efforts of the AGPC, Motorsport Australia, staff and volunteers to stage the opening round of the 2020 FIA Formula One World Championship in Melbourne, however concluded that the safety of all members of the Formula 1 family and the wider community, as well as the fairness of the competition take priority."

The first and second practice sessions were scheduled to take place on Friday afternoon, with qualifying on Saturday and race day on Sunday.

Mr Westacott was asked if the Victorian taxpayer would have to foot the bill for the race.

Photo: Fans waited at the Albert Park track this morning for word on whether the race would go ahead. (ABC News: Simon Tucci)

He acknowledged the cancellation would have "a lot of consequences" some of which were financial.

"We will work those through with commercial rights holders in the days and weeks following this announcement," he said.

"We will be making sure appropriate contractual measures are looked after."

Breaking down the latest news and research to understand how the world is living through an epidemic, this is the ABC's Coronacast.

Fans were told of the cancellation by megaphone at the gates to the track.

"The AGPC has been advised by Formula 1 that the Australian Grand Prix has been cancelled," an official told the crowd.

"Thank you again with your patience with this situation."

One fan asked when they could get their refunds and one angry man demanded to know if schools and supermarkets would be closed next.

Earlier, Victorian Premier Daniel Andrews said if the event had gone ahead, no spectators would have been allowed due to public health concerns.

On his way into the Council of Australian Governments (COAG) meeting in Sydney, Mr Andrews said the Victoria's chief health officer, Brett Sutton, had provided updated advice to event organisers this morning.

"He advised they have a choice to make this morning, running no event or running an event with no spectators," he said.

The decision to cancel the race followed champion driver Lewis Hamilton's comments on Thursday that he was "surprised" the race was going ahead.

McLaren driver Lando Norris posted on social media that while he was "gutted" he would not be able to race, "the most important thing right now is everybody's health."

"We've been doing everything we can to limit [the] spread and that has naturally involved me being around as few people as possible," he said.

"My only thoughts are with the team and everyone in the world fighting this."

Mr Andrews said any other changes to large events would be made based on advice from the chief health officer.

"If we don't do everything we can to reduce the number of people who get the virus then we will only add to the number of people particularly vulnerable people who finish up gravely ill," he said.

The Grand Prix decision could also have implications for the AFL season which is set to get underway in a week's time.

Mr Andrews said there had been "very detailed" discussions with AFL chief executive Gillon McLachlan.

"It's deeply frustrating not to be able to tell you if there will be footy next week but you've got to be guided by the advice," Mr Andrews said.

Topics: motor-sports, sport, infectious-diseases-other, diseases-and-disorders, health, respiratory-diseases, melbourne-3000, vic, albert-park-3206

First posted March 13, 2020 05:55:51