The nation has been chasing a Grand Prix race for years, having already used football, basketball and other sports to enhance its image and attract investment.
Rwanda and the FIA have yet to formally announce the decision, but a source in the country's government told AFP: "Rwanda's bid to host the Formula 1 race has been greenlit, an agreement has been reached."
A source close to the FIA said an official announcement would be made in the Rwandan capital, Kigali, next week, with Qatar supporting the project.
President Paul Kagame formally announced the bid when Rwanda hosted a gathering of the FIA in December 2024.
"It all comes down to respect, and giving everyone the chance to contribute, where they can," he said at the time.
The announcement will delight one of the sport's biggest superstars, Lewis Hamilton.
The seven-time world champion has long called for an African stop on the F1 circuit, backing Rwanda's plans in 2024 and calling the country "one of my favourite places".
Lavish spending
A poor, landlocked country in east Africa still widely associated with a horrific genocide in 1994, Rwanda has used sports to revamp its image, attract tourists and impress investors with its organisational efficiency.
It has spent lavishly on football sponsorship deals with clubs including Arsenal and Paris Saint-Germain, partnered with the NBA to be the main hub of its African basketball league, and hosted last year's cycling world championships.
Critics have called this "sports-washing" - using glitzy events to distract from accusations of serious human rights abuses, including a brutal crackdown on any opposition or dissent.
Others see that as Western hypocrisy, arguing that no one described this year's World Cup in the United States as "sports-washing", despite the country's rights abuses.
The government source in Rwanda said there were worries that the decision may not be entirely welcomed within the country, where a quarter of the population lives below the poverty line and has seen little benefit from high-profile sports tie-ups.
"For the Arsenal deal, government officials went on a media tour talking about it, but this time the temperature in the country is different so they are acting differently. The economy is struggling," the source said.
South Africa has also been bidding to host an F1 race, and its sports minister emphasised that it should not be ruled out just because Rwanda has been selected.
"(Rwanda) have worked on it longer than (South Africa) and deserve it," South Africa's sports minister Gayton McKenzie posted on X.
"Remember though that one country, Italy, has had two F1s a year, and some react like a continent of 55 countries can only get one. SA will get F1, even before 2030."