Bermuda is to go head-to-head with the US port of San Diego in an attempt to win hosting rights for the multimillion-dollar America’s Cup.

Organisers announced today that the Island had made the cut for the final stage of the bidding process to host the world’s most famous sailing event.

Chicago, the third contender, has been dropped but could be given races in the America’s Cup World Series that precedes the main event.

The news means Bermuda will host at least some of the preliminary races for the money-spinning America’s Cup series — even if it does not make it across the finishing line ahead of San Diego for the 2017 match.

Premier Michael Dunkley said: “If Bermuda is ultimately successful, it has the opportunity of being a milestone, spectacular event for our Island.

“It will highlight Bermuda’s legacy as a maritime sailing destination and give us unprecedented exposure.”

He added that hosting the event would require a significant Island-wide effort — and big upgrades in transport, hotels and tourism as a lasting benefit to the Island.

Race organisers are expected to make a final decision on the winning venue before the end of the year.