Rumor: 'Mercedes and Hamilton reach agreement on salary and veto right'

The Formula One world is still waiting for Lewis Hamilton's contract with Mercedes to be renewed. Sources close to the team report that the parties have now agreed on the basic terms of the contract.

With that, they hope to make the new deal official later this week. If these reports are correct, this will put an end to speculation that negotiations have stalled or that Hamilton is considering quitting.

According to AutosportWeb, the parties have agreed on basic terms such as the length of time, salary and bonuses, and a veto right regarding choosing a teammate.

The new contract would be valid for two years, with an option for Hamilton to extend it for another year. However, this option would have a deadline that expires at the end of August 2022.

There still seems to be a gap between the salary Hamilton is demanding, and what Mercedes is willing to pay. Nevertheless, there seems to be an agreement in place and an announcement could be made later this week.