Matrix metalloproteinase-1 (MMP-1) has been implicated in the pathogenesis of osteoarthritis (OA) due to its ability to degrade extracellular matrix component of the joint cartilage tissue that cushions the bone from frictional damage. Canine hip dysplasia, a developmental orthopedic disease which results in arthritic condition as is seen in human OA is an excellent system to study the involvement of MMP-1 in the pathogenesis of OA. To date, however, no report is available regarding canine MMP-1 promoter and the regulatory mechanism by which increased synthesis of MMP-1 protein might be regulated. To gain an insight, we have investigated the promoter region of canine MMP-1. MMP-1 synthesis in the resident cells of arthritic joints is regulated via two major cytokines, IL-1β and TNF-α. By using a series of progressively deleted reporter constructs, multiple cytokine-responsive elements were identified in the proximal promoter region of canine MMP-1. These include DNA-binding elements of AP-1 and SAF-1 transcription factors. Mutation of AP-1 or SAF-1 element resulted in marked reduction in the cytokine responsiveness of MMP-1 promoter. We show that AP-1 and SAF-1 DNA-binding activities are increased in cytokine-stimulated cells as well as in osteoarthritic cartilage tissues. In correlation, immunohistochemical analysis indicated higher levels of MMP-1, SAF-1 and AP-1 proteins in osteoarthritic but not in the normal cartilage tissue. These results show that induction and activation of AP-1 and SAF-1 transcription factors are involved in the regulation of MMP-1 expression in the chondrocytes which could be used as therapeutic targets to combat pathogenesis of OA.