Investors were told the city’s Mayoral Committee has agreed to the proposed route and investment in the track.
It has also recommended the council, which has final approval, confirm its support.
LVCG is entitled to a management fee for the staging of the race as well as having the exclusive sponsorship rights.
In the same announcement, the group said a five-year partnership has been struck with the South African Tourism Board as the travel and tourism partner for the race.
Bruce Parker-Forsyth, managing director of Live Company Sports & Entertainment, said: ” We are delighted with the positive support from the City of Cape Town and South African Tourism.
“Our next phase is the track reveal that should happen in September where we will engage with all key stakeholders and a number of corporate companies we have been in discussion with.”