On Friday, a ground-breaking ceremony was held at the 4.7 km Velociudad Speedcity circuit in Zarate, 100 km from the capital, which designers Populous said will be capable of returning F1 to the South American country for the first time since 1998.
"The plan is for a circuit capable of delivering a Formula One event," John Rhodes, Associate Principal of Populous, said.
"The key is to offer a category one circuit. Once the facility is there, then it's down to a promoter...the issue is to have a high performance circuit capable of holding a MotoGP then add the necessary requirements for a Formula One race.
"The main 4.7 km circuit will be good for F1 and endurance races like Le Mans, it's a good, sensible length."
The $100million project will be completed in two phases and will include South America's first driver trainer centre and academy. The first phase, a 3.1 km track, 4x4 off-road circuit and team garages, is scheduled to be completed in 14 months.
The second phase will extend the track to its full length, making it eligible for a licence from the FIA governing body.
South America's only active F1 track is Interlagos in Brazil, which hosted the final race of the 2011 season last month.
There have been 20 Argentine Grands Prix in all, with Michael Schumacher the most recent winner at the Autodromo Oscar Alfredo Galvez on the outskirts of Buenos Aires almost 14 years ago.
Populous are also responsible for the recent re-design of British Grand Prix venue Silverstone and are involved in designing a new F1 track in Mumbai.
The design firm also planned the London 2012 Olympics Stadium and the Soccer City stadium which hosted last year's World Cup final in South Africa.