The deal will mean the RoadNats will extend its history in the city to 17 consecutive years by the time the new deal expires in 2023.

The early year fixture on the Australian sporting calendar was first held in the city in 2002, and then from 2007 onwards.

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The state government has also confirmed that from 2021, Cycling Australia will add Victorian junior and masters criterium championships, a social program of events including community rides and business competitions, and will host a national development conference for cycling coaches and officials.

Cycling Australia's chief executive Steve Drake said Ballarat had been the perfect host for the event, and he hoped it would continue to grow.

READ MORE: 2020 Sturt Street criteriums preview

"We've been there for a long time, we get along really well with the City of Ballarat and the locals, and the whole of the city seems to embrace the championships, so we're really happy to be able to stay there," he said, noting Ballarat had the right of first refusal for the event.

"We always have to think about where else we can go, but right of first refusal did mean Ballarat had a relative advantage over others."

Ballarat had a number of advantages - as well as the welcome from the community, there was space to run three cycling disciplines across the event, and the infrastructure to host thousands of people, from spectators to racing teams to staff and volunteers.

"It wouldn't be easy to find an alternative place if we wanted to, not that we don't get pressure from the cycling community to say "hey, why don't we move this around", but Ballarat's a great place for it, so we're happy to be here for the next three years," Mr Drake said.

He also commended the state government for backing the plan to stay, and the City of Ballarat for its support over the years.

With the certainty of the three-year agreement, Cycling Australia could look at some changes, as this year's new time trial course has been hailed as a success from competitors.

"Over the course of the three years of the new agreement, we'll certainly have a look at whether we change the road race course, maybe move it somewhere else in Ballarat - not that we've done any detailed planning, but it's something we can have a look at, some riders have suggested changing it," he said.

Crowds in excess of 25,000 lined Ballarat and Buninyong's streets in 2019, while broadcasts on SBS and Fox Sports are expected to reach another 500,000 viewers nation-wide.

Cycling expert and SBS commentator Matt Keenan said the event had built a "real tradition" in Ballarat.

"If we can continue to grow as we have for the past five or six years, it's great for cycling and great for Ballarat," he said.

"There'll be some people that see this as a negative, because they want the championships to go to their city, but they have to put a better offer on the table than what's on offer here."

He added the famous Mount Buninyong road race remained a prestigious course, and the development of the program, especially the inclusion of para-cycling events, had been the most important progress for Ballarat.

"It's great for the elites that do go to Olympics and worlds to be able to watch those para-athletes, to see what they do and the hurdles they overcome, it's as inspiring for them as much as the other way around," he said.

Buninyong MP Michaela Settle said she was thrilled the region would continue to host the event

"Ballarat is known around the country as the home of Road Nats and it's fantastic that we now have this marquee attraction locked in for at least another three years," she said.

Wendouree MP Juliana Addison said the announcement kept Ballarat at the front of the peleton.

"Regional Victoria is an Australian cycling hot spot and we're making sure that Ballarat remains ahead of the pack," she said.

"Big events like this provide a major boost to businesses like hotels, cafes and restaurants, and that supports local jobs."

Ballarat mayor was also 'ecstatic' the partnership between the council, state government and Cycling Australia would continue for another three years.

"This announcement demonstrates the government's continued confidence in Ballarat to host a world-class cycling event such as the Road National Championships, which delivers economic and tourism benefits for regional Victoria," Cr Taylor said in a statement .

"Aside from being the most prestigious event on the Australian Road cycling calendar - the RoadNats have also evolved to be more inclusive with a vastly expanded event schedule," he said.

Cr Taylor thanked the extended Ballarat community, particularly the township of Buninyong, for their continued support of the RoadNats - where the racing action moves to this weekend.

"The City of Ballarat would not be in a position to deliver these events without the foresight and co-operation of residents and business owners who have worked alongside our events team to contribute to the delivery of a world-class event," he said.

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