George Russell poised for a lucrative £30M a year contract extension as Max Verstappen shuts the door on Mercedes: Reports

The Mercedes driver drama finally seems to be coming to a close as George Russell gets close to signing a new £30 million [$40.2 million] a year contract, according to reports. This was just a few hours after it was confirmed that Max Verstappen will stay at Red Bull in 2026 by insider Erik van Haren.

Rumors of Max Verstappen joining Mercedes as early as 2026 were at an all-time high after the British Grand Prix weekend. Russell had even claimed that his contract extension at the Silver Arrows was being delayed due to the team's interest in signing the reigning F1 world champion.

Now, a fresh report from The Daily Mail has claimed that Russell was all set to sign a new deal with Mercedes, which is expected to be worth around £30 million [$40.2 million] a year. The British news outlet stated that the major details of his new contract have already been agreed upon, and only the finer details are yet to be confirmed.

Dutch journalist Erik van Haren, who is considered to be a close insider of the Max Verstappen camp, reported after the Belgian GP on Sunday that the Dutchman was to remain at Red Bull in 2026. He confirmed the existence of a much-reported exit clause in Verstappen's contract, which needed him to be fourth or lower in the Drivers' standings by the summer break, to trigger an exit.

The driver sits third in the standings after Belgium, 28 points ahead of George Russell in P4, making it mathematically impossible for him to trigger this clause post the Hungarian GP. Reportedly, Verstappen first wishes to see the pecking order amid the new regulations in 2026 before deciding on his future team.

Doors to Mercedes remain open for Max Verstappen even amid George Russell's contract extension

Max Verstappen and George Russell post-qualifying - Grand Prix of Canada - Source: Getty

Erik van Haren has claimed that the doors will remain open for Max Verstappen if he wishes to join Mercedes in the future, though the team has offered a contract extension to incumbent driver George Russell.

According to Van Haren, Mercedes F1 CEO and team boss Toto Wolff remains keen on the idea of signing Verstappen in the future. He has also said that the German team was offering only a short-term contract to Russell, now that Verstappen has decided to stay at Red Bull for one more year.

Kimi Antonelli, who has been struggling to find form in recent weeks, will also receive a short-term contract extension, according to Van Haren. It remains to be seen whether the Mercedes drivers were actually given just short-term extensions or multi-year deals.

Numerous reports have suggested that Mercedes might have the best power unit coming into the 2026 season, as the regulations have received an overhaul. However, Verstappen has decided to stay put for the moment, as he waits to see what the grid will look like next year.

Edited by Hitesh Nigam