Formula One chiefs on Wednesday confirmed that the storied Interlagos circuit will continue to be the Brazilian home of the sport until 2025.
Rio had wanted to take the race but their bid to build a new track fell foul of environmentalists who protested the loss of a tropical forest which would have been felled to accommodate a new circuit.
"We are pleased to announce the city of Sao Paulo will continue to host the Brazilian Grand Prix until 2025 and look forward to working with our new promoter in the years ahead," said Chase Carey, the chief executive of Formula One.
"Brazil is a very important market for Formula One with devoted fans and a long history in the sport.
"The race in Brazil has always been a highlight for our fans, the drivers and our partners and we look forward to providing Formula One fans with an exciting race at Interlagos in 2021 and over the next five years."
Seven-time world champion Lewis Hamilton had been one of the voices expressing his opposition to the proposed circuit plan in Rio.
Interlagos has staged the Brazilian leg of the championship since 1990.
It will be called the Sao Paulo Grand Prix from 2021 under the new deal which runs until 2025.