Alinghi celebrate claiming the Auld Mug trophy in Valencia
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Valencia has been chosen to stage the 2009 America's Cup after impressing as hosts during this year's final.
Swiss team Alinghi defeated Team New Zealand 5-2 earlier in July to defend their title in the Spanish port.
Organising chief Michel Bonnefous said: "Some six million people visited us and it was the most competitive America's Cup in history.
"We wanted to continue with those emotions and that is why I announce that Valencia will be the venue."
The decision means the prestigious race will be held in European waters for only the third time.
Valencia mayor Rita Barbera added: "When we set out to hold the 32nd America's Cup we committed ourselves to hold the best ever America's Cup and we did just that.
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