Onchan Commissioners say the decision to grant the use of Nivison Stadium to Onchan Raceway was based on what's best for the facility.
It means the stadium will remain a venue for go-karting and stock car racing for the next seven years.
Earlier the Isle of Man Cycling Association said it was extremely disappointed their plans for a velodrome at the site were rejected.
Chairman of Onchan Commissioners, Derek Crellin, says members thought long and hard about the decision:
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