The project was led by Spanish engineer Manuel Medina Lara, based on a preliminary concept from Alessandro Rocci. The circuit opened on 8 December 1985, and within its first year hosted both the first international motorcycle event in Spain and the 1986 Formula One Spanish Grand Prix. The circuit's remote location relative to major population centers — and limited road access — constrained spectator numbers despite a capacity of up to 125,000.
The circuit underwent notable layout changes in 1992, when four corners were removed to create the long right-hander Curva Sito Pons. Ahead of the 1994 European Grand Prix, a new chicane was added at the corner where British driver Martin Donnelly had suffered a career-ending accident during qualifying for the 1990 Spanish Grand Prix. This section was named the Senna curve.
Jerez hosted the Spanish Grand Prix from 1986 to 1990, after which Formula One moved to Circuit de Barcelona-Catalunya. The circuit returned to the F1 calendar as host of the 1994 European Grand Prix and the 1997 European Grand Prix.
The 1997 European Grand Prix stands as one of the most significant races in recent motorsport history: it was the championship decider between Michael Schumacher and Jacques Villeneuve. During the race, Schumacher and Villeneuve collided at the Dry Sac corner; Villeneuve continued to finish third and claim the title, while Schumacher retired. The circuit's Mayor, Pedro Pacheco, disrupted the post-race podium by presenting a trophy that was due to be given by a Daimler-Benz representative — an incident that contributed to Jerez being effectively banned from hosting another Formula One Grand Prix. No F1 race has been held there since, though the circuit remained a popular winter test venue through 2015.
Jerez has been deeply embedded in Grand Prix motorcycle racing since its early years. It hosted the 1988 Expo 92 motorcycle Grand Prix and subsequently became a consistent stop on the MotoGP calendar. The circuit hosted the Spanish motorcycle Grand Prix on many occasions, with the Spanish round of MotoGP remaining one of the best-attended events on the calendar, drawing strong support from local and national fans.
In 2020, the circuit hosted both the Spanish motorcycle Grand Prix and the Andalusian motorcycle Grand Prix within successive weekends, serving as a key venue when the COVID-19 pandemic required compressed race calendars within a limited number of approved locations.
The Superbike World Championship has maintained a presence at Jerez since the circuit's early years and continues to feature the venue on its current calendar in October. The circuit's mix of slower technical sections and faster flowing corners suits Superbike machinery, and the October slot places the round toward the end of the championship season. The Supersport World Championship and Supersport 300 World Championship have also featured rounds at Jerez.
On 3 May 2018, the circuit was formally renamed to honor Ángel Nieto, the legendary Spanish motorcycle racer who had died in August 2017 following injuries sustained in a road accident. Nieto won 13 world championship titles across the 50cc and 125cc classes, making him one of the most decorated riders in Grand Prix motorcycle history. Earlier, in May 2013, the circuit's final corner had been named after Jorge Lorenzo, the Spanish four-time world champion then at the height of his career. On 3 May 2019, the sixth corner was renamed to honor Dani Pedrosa upon his retirement.
The circuit has been the site of several fatal accidents, including the deaths of Nobuyuki Wakai in 1993, Javier Moreno in 1990, Marcos Garrido in 2019, Ismael Bonilla in 2020, and Dean Berta Viñales — at age 15 — during the 2021 Superbike World Championship weekend.
Circuito de Jerez occupies an unusual place in motorsport history: a circuit once banished from Formula One following a podium incident that has nonetheless endured for four decades as one of Europe's most important motorcycle racing venues. Its renaming after Ángel Nieto cemented its identity as a cathedral of Spanish motorcycle racing, and its continued role as host of the MotoGP Spanish Grand Prix, WSBK, and major winter testing ensures its lasting relevance in world motorsport.