Lewis Hamilton has reportedly signed a 2-year contract extension with Mercedes as well as taken a pay cut, announcement soon

Months of speculations about Lewis Hamilton moving away from Mercedes seem to finally be put to rest.

According to reports from UF Journal's Sergio Rodriguez, the seven-time world champion has reached an agreement with Mercedes and signed a contract extension.

The Briton's current contract is set to run out at the end of the current season (2023), making him a free agent. It was also previously reported that the F1 driver might be close to signing a deal with Scuderia Ferrari.

However, they seem to have been put to bed as it is now reported that Lewis Hamilton has agreed upon a new 1+1 contract with Mercedes.

The contract will tie Hamilton down to Mercedes until the 2024 season with an option to extend until 2025 upon mutual agreement. This news will undoubtedly bring relief to Mercedes fans who were concerned about the possibility of losing their star driver.

---

Lewis Hamilton to take a pay cut in new deal

In an unexpected turn of events, the driver will also reportedly take a pay cut. The exact figures are not known, but Hamilton, who currently earns £40 million per season, is reported to sign a deal that'll make him earn less.

The negotiations between Hamilton and Mercedes have been ongoing for quite some time, with both parties working to find a mutually beneficial agreement.

Earlier, Mercedes boss Toto Wolff had expressed confidence that the contract would be signed soon.

"It is going to happen soon, and we are talking more days than weeks," Wolff told CNBC's Squawk on the Street programme in New York.

The Mercedes boss also suggested the possibility of the deal with Lewis Hamilton being signed before the upcoming Canadian GP.

"We are trying hard [to get it done before the Canadian Grand Prix]. I will see him today and maybe we will talk about it."

Mercedes F1 fans around the world are eagerly awaiting the official announcement of Hamilton's contract extension. The agreement will provide stability and continuity for both Hamilton and Mercedes, allowing them to focus on their shared goals of getting things together on the grid.