FORMULA One is likely to be part of this year's National Day Parade (NDP).

Talks designed to bring the Ferrari F1 team to Singapore are believed to be well-advanced.

According to sources involved in the discussions, the appearance of the 14-time F1 champions is meant to be a post-fireworks surprise for the Aug 9 event on the floating platform.

There are also plans to run the Ferraris on closed roads around the City Hall area in a short street demonstration the following day.

The two events appear designed to create an atmosphere of excitement and expectation in the run-up to Singapore's inaugural F1 Grand Prix, which is likely to be held in either September or early October next year.

That race will be run on a street circuit around the Marina Bay area. It is likely to be held at night.

It is understood that the parties involved in next month's events include race promoter Singapore GP, the Singapore Tourism Board and the NDP organising committee.

While the green light has reportedly been given to run the events, talks could come to a halt should sponsorship dollars be insufficient.

A source estimates the cost of running the two events at over $1 million, with about $500,000 going towards Ferrari's appearance fee.

But do not expect to see Felipe Massa or Kimi Raikkonen revving up on Singapore's streets.

Ferrari's main drivers will be racing in the Hungarian Grand Prix in Budapest on Aug 5, four days before National Day.

A Ferrari test driver - possibly Luca Badoer or Marc Gene - a car and crew will be flown in instead.