The 4.6km layout in Portimão last appeared on the schedule in 2021 and is one of four circuits in Portugal to have hosted a Grand Prix, along with Estoril, Porto, and Monsanto.
The fast-flowing, undulating nature of the venue has drawn comparisons with classic tracks such as Spa-Francorchamps and the original Nürburgring Nordschleife.
All of F1's previous races in Portugal have been run as the Portuguese Grand Prix.
Stefano Domenicali, President and CEO of Formula 1, said: “I’m delighted to see Portimão return to the Formula 1 calendar and for the sport to continue to ignite the passion of our incredible Portuguese fanbase. The circuit delivers on-track excitement from the first corner to the chequered flag, and its energy lifts fans out of their seats.
"The interest and demand to host a Formula 1 Grand Prix is the highest that it has ever been, so I would like to thank Prime Minister, Luís Montenegro, the Minister of Economy and Territorial Cohesion of Portugal, Manuel Castro Almeida, the Secretary of State for Tourism, Commerce and Services, Pedro Machado, President of Turismo de Portugal, Carlos Abade, President of the Algarve Tourist Board, Andre Gomes and CEO and Chairman of the Algarve International Circuit, Jaime Costa for their support in bringing F1 back to Portugal.
"I look forward to working together again to ensure that Portimão returns to the calendar in emphatic style.”