George Russell revealed his and Mercedes’ interests regarding his future have “not aligned”, which puts him “at risk” of a surprise exit from the team.
After Max Verstappen confirmed he will remain at Red Bull next year ahead of this weekend's Hungarian Grand Prix, Russell is the most high-profile driver whose future is not certain.
But Sky Sports News understands Russell is closing in on a multi-year deal, which would tie him to Mercedes until at least the end of 2027.
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"My whole career, until last year, the team have supported me so much and given me such amazing opportunities," said Russell.
"Our goals have been aligned and what has been in the best interest of the team has also been in the best interest of me. These last six months have been a very unique situation where, I don't have a huge power in that sort of agreement.
"Maybe the interests were not aligned for some time, which, of course, puts me at risk for these last six months. But then it was my job to perform and reduce that risk."
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Russell has shone this season as Mercedes' outright team leader, picking up a superb win in Canada and four other podiums to be fourth in the Drivers' Championship.
The 27-year-old said he "trusts" team principal Toto Wolff and that a new contract must be "right in both ways".
"I still trust in the team that they will always support me as long as I'm performing, so that's what I need to focus on," he added.
"But of course, for both Kimi [Antonelli] and I these past months have not been the most assuring for our future, and that's just been a bit conflicting."
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Russell: No time pressure to agree contract
Russell's options during his contract saga have been limited by the fact that as well as driving for Mercedes, he is managed by the team.
Therefore, any talks he holds over moving to another team would technically have to be handled by Mercedes.
Russell joined Mercedes' young driver programme in 2017, before being loaned out to Williams for three seasons and replaced Valtteri Bottas as Lewis Hamilton's team-mate at the Silver Arrows in 2022.
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The British driver said: "They [Mercedes] ultimately hold the cards because of the situation we find ourselves in with the management agreement, so they have had no rush to sign Kimi or I because we've got sort of his longer term overriding deal in place.
"I've never feared losing my seat, and that's not even been on the table once this year, even though you guys like to make a big deal out of it.
"Maybe 12 months ago, I was a bit more anxious and wanted to get something sorted or confirmed for 2026, maybe six months ago, I felt the same.
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"But I'm performing better than ever. I still feel I've got more to give. I've waited so long, and I think now I want to get through this weekend, I want to go on holiday next week and enjoy the break.
"There is no time pressure my side. There's no time pressure from the team side."
Mercedes revert to old suspension for Hungarian GP
Mercedes have gone back to an old suspension that was last used at the Spanish Grand Prix at the start of June for this weekend's Hungary race.
Despite Russell winning the Canadian Grand Prix with the new suspension that was first seen in Imola in May, Mercedes' form has dwindled with the team scoring just 21 points in the last three rounds.
Antonelli has particularly struggled as his last points finish came in Montreal and he was eliminated in SQ1 and Q1 last time out in Belgium.
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"This weekend we're going back on the old suspension and that will hopefully bring the feeling back," said Antonelli.
"Since we moved to that suspension, apart from Canada, I've been struggling to drive the car and get the confidence.
"Probably also my side I didn't adapt the best because I was always trying to keep my style and to drive the way I wanted but it didn't really work out. George on the other hand has been adapting better, also has a different driving style, also being able to adapt better.
"That's what has been hurting me in the European season. Hopefully going back to old suspension, it will bring back the feeling I had prior to the start of the European season."
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Mercedes held a "big meeting" earlier this week to understand their loss of form but Russell says reverting to the old suspension has "been on the cards for a little while".
"It's part of development. You see it with other teams as well. You are looking for that last tenth of a second and you often see the gains," he said.
"Before you put it on the car, you don't know what the limitations are going to be. There's no guarantee that's the reason why we have taken a step back. It could be a factor.
"We will use this weekend to assess but you look at the results as a whole, we have gone backwards and we need to go back to a baseline we know."
Sky Sports F1's Hungarian GP Schedule
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Friday August 1
8.50am: F3 Practice
10am: F2 Practice
12pm: Hungarian GP Practice One (session starts at 12.30pm)
1.55pm: F3 Qualifying
2.50pm: F2 Qualifying
3.35pm: Hungarian GP Practice Two (session starts at 4pm)
5.15pm: The F1 Show
Saturday August 2
9am: F3 Sprint
11.15am: Hungarian GP Practice Three
1.10pm: F2 Sprint
2.15pm: Hungarian GP Qualifying build-up*
3pm: Hungarian GP Qualifying*
Sunday August 3
7.25am: F3 Feature Race
8.55am: F2 Feature Race
10.40am: Porsche Supercup Race
12.30pm: Grand Prix Sunday: Hungarian GP build-up*
2pm: The HUNGARIAN GRAND PRIX*
4pm: Chequered Flag: Hungarian GP reaction
*also on Sky Sports Main Event
F1 heads to the Hungarian Grand Prix for the final race before the sport's summer break, watch live on Sky Sports F1 from Friday. For Sky customers, Sky Sports F1 is now found on channel 407. Stream Sky Sports with NOW - no contract, cancel anytime