The Bahrain Grand Prix will host the opening round of the 2008 Formula One World Championship, moving the Australian GP to the second round.
The Australian Grand Prix Corporation announced on Monday that the March 13-16 Albert Park event would be the second race on the calendar and would drop back to a 3:30 pm local time start (5:30 am GMT) to cater for European television audiences.
Bahrain held the first race of the season in 2006, gaining record TV viewership.
Melbourne was touted to hold next year's race at night, however organisers said the race will continue to run in daylight.
"Taking all factors into account, this is the best option for our event and the people who support it," Australian Grand Prix Corporation (AGPC) chairman Ron Walker said.
"Our investigations (on whether or not to hold a night race) have convinced us that as things currently stand, the disadvantages outweigh the advantages.
"Going later (with the race start time) will benefit fans at Albert Park, who will enjoy an even bigger day of entertainment, and people watching the race live in other parts of the world - especially Europe, where fans will be able to get up closer to breakfast time."
Additional changes for next year's event include the return of the popular V8 Supercar support race to Albert Park for the Grand Prix weekend.
"I'm also delighted that the V8 Supercars are back," Walker said. "This is a great win for everyone and especially motorsport fans.
"The combination of the world's most popular race cars in Formula One and the V8s - Australia's number one national category - is unique to Albert Park."
Melbourne race a 3:30pm local start. When was the last race that didn't start with a ??:00 at the end