Lewis Hamilton signs new Mercedes deal 'worth £100m'

The reigning world champion's protracted contract negotiations had been a major talking point during the 2015 season.

Hamilton's team-mate Nico Rosberg announced an extended deal last summer, but talks with Hamilton were paused during the 2014 title fight and then dragged on through the opening grands prix of this year.

But Hamilton has now come to an agreement with his team, with his new salary and reward package reportedly around the £100m mark over three years.

It marks a huge pay rise for Hamilton, who earned a reported £20m in 2014. That was still enough to put him to the top of British sport's rich list last month, with an estimated net worth of £88m - and he seems certain to be even further ahead of second-placed Wayne Rooney by this time next year.

“Mercedes is my home and I couldn’t be happier to be staying here for another three years," said Hamilton. "This is a company filled with real passionate racers, from the board room to the factory floor, and an incredible hunger to win.

"Even after the success of last year, that hunger is greater than ever – and it’s the same for me, too. The Mercedes car I am driving right now is the best I have ever had in my career; it’s just so much fun to be out there every weekend, on the limit and fighting to win at every track.

"Mercedes-Benz began supporting me in 1998 so I am very proud that this contract means I will mark 20 years with Mercedes in 2018.”

Hamilton joined Mercedes for the 2013 season after spending his F1 career up to that point with the McLaren team that had nurtured him through junior racing.

The 30-year-old Briton has taken 15 grand prix wins since coming to Mercedes and added last year's drivers' crown to his 2008 title with McLaren.

He heads into this weekend's Monte Carlo race with a 20-point lead over Rosberg in the standings.

Head of Mercedes-Benz Motorsport Toto Wolff continued: “Continuity is one of the key factors for delivering success in Formula One and we now have that in place. Lewis enjoyed an historic World Championship season with Mercedes-Benz last year and it was a priority for this season to renew his contract for the next term.

"We have taken the right amount of time with the process and not rushed ourselves. The result is a strong agreement that will enhance Lewis’ association with the Mercedes-Benz brand, and that recognises and respects the market value of Lewis and of Mercedes in Formula One.

"Lewis’ sporting track record speaks for itself and he is a great personality for the company. Personally, I am looking forward to continuing to race with the strongest driver pairing in Formula One and to more historic achievements together.”

The negotiations have been prolonged and tortuous at times but now the news is finally confirmed, we have to conclude that this is fantastic news for Mercedes. There were brief whispers about interest from Ferrari - who, incidentally, pay both Sebastian Vettel and Kimi Raikkonen far more - so Mercedes will be delighted to have secured the future of the best driver on the grid at present, and a man who looks destined to win a second world title in a row with the team this year.

Hamilton, meanwhile, is collecting a huge pay-day but one he undoubtedly deserves as the most dynamic driver in the sport. He’s also the most entertaining and outspoken, with his rivalry with Rosberg giving F1 some much needed edge over the past two seasons. This is no doubt a good deal for all parties concerned.