The circuit project was led by Spanish engineer Manuel Medina Lara, based on a preliminary concept from Alessandro Rocci. It opened on 8 December 1985, and within months was hosting international competition: a motorcycle event in March 1986 was the first major international motorcycle race held in Spain, followed by the Formula One Spanish Grand Prix in April of that year. Capacity for spectators was as high as 125,000, though the circuit's relatively remote location meant attendance often fell short of that figure.
Jerez hosted the Formula One Spanish Grand Prix five times, from 1986 through 1990. The circuit's location contributed to lower-than-expected crowd numbers, and after 1990 Formula One moved its Spanish round to Circuit de Barcelona-Catalunya.
Jerez hosted two further Formula One races as the European Grand Prix: in 1994 and 1997. Before the 1994 race the circuit underwent modifications, including the elimination of four corners to create the long right-hander Curva Sito Pons. A new chicane — the Senna curve — was installed at the corner where Ayrton Senna's compatriot Martin Donnelly had suffered a near-fatal accident during qualifying for the 1990 Spanish Grand Prix.
The 1997 European Grand Prix was the Formula One season's championship decider between Michael Schumacher and Jacques Villeneuve, who collided during the race. Schumacher's car retired, and Villeneuve went on to finish third and claim the title. The aftermath of that race extended beyond the track: during the podium ceremony, Jerez's Mayor Pedro Pacheco disrupted the celebrations by presenting a trophy that was not his to give, conflicting with Daimler-Benz's presenting-partner role. The incident resulted in Jerez being effectively banned from hosting any future Formula One Grand Prix. The circuit has not hosted an F1 race since.
Jerez remained a primary winter testing venue for Formula One teams until 2015.
The circuit has been a consistent fixture of the FIM Grand Prix motorcycle racing calendar. The Spanish Motorcycle Grand Prix — held in April — is its flagship event and one of the most popular rounds on the MotoGP calendar, benefiting from Jerez's mild spring climate and passionate Spanish motorcycle racing fanbase.
The Superbike World Championship has used Jerez as a regular venue for both races and winter testing. The circuit's weather profile, with mild winters and hot dry summers, makes it particularly well-suited to year-round testing for both MotoGP and World Superbike teams.
The circuit's final corner was renamed after Jorge Lorenzo in 2013, honouring the Spanish world champion. On 3 May 2018, the entire circuit was renamed in honour of Ángel Nieto, the legendary Spanish motorcycle racer who died in 2017 having won 13 world championship titles. The sixth corner was subsequently renamed after Dani Pedrosa in 2019.
In 1992 the circuit's configuration was modified with the removal of four corners to create the Curva Sito Pons. The 1994 Senna chicane addition was a further structural change. The circuit was resurfaced in 2005.
Several fatal accidents have occurred at Jerez across its history in motorcycle competition. Dean Berta Viñales, 15 years old, died following a crash during the Superbike World Championship weekend on 25 September 2021. Earlier fatalities include Spanish racers Ismael Bonilla (2020), Marcos Garrido (2019), and Javier Moreno (1990), as well as Japanese rider Nobuyuki Wakai in 1993.
Jerez occupies a distinctive place in motorsport history: the site of Villeneuve's 1997 championship victory, one of Formula One's most dramatic title conclusions; a pioneering venue for Spanish motorcycle racing; and a track whose name now honours two of Spain's greatest motorcycle champions.