Mexico City mayor Claudia Sheinbaum said in a statement that the deal was based on a new financing model without the use of public resources.
"The Mexico City government will be an intermediary, creating a trust that will raise the private investment required to deliver this international event," she said. Ticket prices will remain unchanged.
Confirmation of Mexico means the 2020 calendar is set to expand from 21 races to a record 22, with a new round in Vietnam and the return of the Dutch Grand Prix while Germany is set to drop off. (Reporting by Alan Baldwin in London, editing by Ed Osmond)