At the start Michael Schumacher gets off the line slightly slower than his Ferrari team-mate Eddie Irvine and the two McLarens. This means that it is Eddie who leads into the first corner with Schumacher second ahead of Hakkinen, Coulthard and Giancarlo Fisichella. Behind the Italian is his fast-starting team-mate Alexander Wurz. Further back Jacques Villeneuve makes a great start but then runs slightly wide at the first corner, allowing Heinz-Harald Frentzen and Ralf Schumacher to stay ahead of him.

Further back Damon Hill runs 10th ahead of a fast-starting Rubens Barrichello and the two Saubers, Jean Alesi leading Johnny Herbert.

At the end of the first lap Irvine runs over a kerb at the chicane and runs wide, allowing Schumacher to get alongside and Michael takes the lead as they go into the final corner. Schumacher begins to build up a lead while Hakkinen is behind Irvine.

On lap five Barrichello makes a mistake and drops behind the Saubers and two laps later Jarno Trulli and Pedro Diniz both retire with mechanical trouble.

Schumacher is able to build a lead of around five seconds while Hakkinen closes on Irvine and on lap 13 challenges at the chicane. The move fails but on the next lap Hakkinen gets ahead of Irvine and begins to chase Schumacher, setting four fastest laps in the course of the next seven laps and gradually begins to reel Michael in. He then makes a mistake and loses a few tenths but then begins to close again.

Schumacher pits on lap 24 and Hakkinen puts in a burst of speed, setting another fastest lap. In the course of the next few laps Irvine, Frentzen, the Benettons and the Jordans all pit but Hakkinen stays out, lapping very quickly, until lap 28 when he pits. He comes out just ahead of Schumacher.

For the next 10 laps the pair run within a second of one another, neither making any mistakes while behind them Coulthard runs a lonely third while Irvine has his hands full with pressure from Frentzen and the two Benettons. On lap 38 Fisichella scrambles past Frentzen but the following lap he runs wide and loses places to Heinz-Harald and Wurz.

On lap 39 Hakkinen breaks through the one second mark and tenth by tenth builds his lead as the second stops approach. On lap 47 Schumacher pits and on the next lap Hakkinen comes in, emerging in the lead once again. During the pit stop sequence Ralf Schumacher does a good job to get ahead of the closely-matched Frentzen, Fisichella and Wurz to take fifth place. Unfortunately Ralf goes off on lap 53 and has to retire with brake problems.

The rest of the field do their pit stops, the only change in the order being that Fisichella is able to get ahead of Wurz once again.

Hakkinen leads Schumacher by around five seconds and then there is a long gap back to Coulthard. A long way behind him is Irvine, a few seconds ahead of a battling Frentzen and Fisichella with Wurz right behind them. Further back comes Villeneuve being chased by Hill.

In the final laps Hakkinen slows down a little and Schumacher is able to close to within 2.2 seconds at the flag after a tense and fascinating battle.

Hakkinen and Schumacher head to Suzuka with the Finn ahead in the World Championship by four points.