Lewis Hamilton, Mercedes F1 close to new contract

Newly-crowned Formula One world champion Lewis Hamilton has revealed that he plans to sign a contract extension with Mercedes F1 within the coming week. Hamilton, who clinched his fourth world championship at the Mexican Grand Prix last week, is under contract with the team until the end of the 2018 season.

According to BBC Sport, the basic deal is worth US$31 million (AU$40 million) per year with bonuses for winning races and the championship. The new deal could fetch Hamilton as much as US$40 million (AU$52 million) over the course of a season.

"It should be done this week. There is no reason it shouldn't. Honestly, it's 99.6% done. There's no negotiating left, it's just legal stuff," Hamilton said in the lead-up to the Brazilian Grand Prix (Nov. 10-12).

Lewis Hamilton new contract nearly finalised

The report adds: "The overall value of Hamilton's deal is fundamentally similar to F1's two other big earners and multiple champions, McLaren's Fernando Alonso and Ferrari's Sebastian Vettel. Alonso is being paid US$40 million (AU$52 million) a year by McLaren and Honda for the duration of the three-year deal he has signed, which runs until 2017. Vettel will earn a one-off US$50 million (AU$65 million) in his first season with Ferrari in 2015 but less after that, according to senior sources."

Valtteri Bottas, Hamilton's teammate, has already signed a fresh one-year contract to race for the German team in the 2018 Formula One season. Toto Wolff, executive director at Mercedes F1, revealed recently that Hamilton and Bottas feature in the team's long-term plans. Bottas earned a last-minute starting spot with the team after former world champion Nico Rosberg retired abruptly at the end of the 2016 season.

"We spoke a few weeks ago back at the factory and said that we would be sitting down. It is quite and easy process for us. We already have something great in place and it is really just about extending it and enhancing it and working on what more I can do for them and vice versa. But I am pretty sure within the next month or so we would have time to have sat down."

The 2017 Formula One season will conclude with season-ending races at Brazil and Abu Dhabi. With the Drivers' and Constructors' titles already in the kitty, Mercedes F1 faces little pressure from rival teams. The German team has already locked up Hamilton and Valtteri Bottas for the 2018 Formula One season.