Yorkshire Balloon Fiesta organisers say the move will allow the event to expand.
The organisers of an annual balloon festival have confirmed this year's event will take place at Castle Howard.However, last September the racecourse said it would not return to the venue due to changes in its schedule.
Organiser John Lowery said the choice of Castle Howard for the festival, which attracts up to 60,000 visitors, had come after "much deliberation" and would enable it to expand.
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