Lewis Hamilton: F1 world champion signs new Mercedes contract for 2021 season

Team boss Toto Wolff said the duration of the contract was a consequence of the lateness of the talks, which was caused by them having to delay negotiations when Hamilton contracted Covid in December, and their mutual desire to “see how the world develops”.

There is the uncertainty caused by the pandemic, as well as by a number of major rule changes in F1, including a budget cap that starts this year at $145m (£114m) and new technical rules for 2022 aimed at closing up the field.

Wolff said the global situation could have an impact on the team’s revenue, while Daimler as a group is having to invest in electrification, adding: “We are living a financial reality that is very different from a few years ago.”

He added: “We are totally in line – Lewis and me and the wider group in Mercedes – about the situation, so there was never a discrepancy in opinion.

“It was just we felt that we had a good signature on a 2021 contract and we needed to get going and then find some time in 2021 earlier than this time to discuss the future.

“And it’s not to discuss only 2022 but also beyond, and that was not something we wanted to carve out via video conferencing between Christmas and the end of January.”

Wolff emphasised that the decision to set up a foundation on inclusivity and diversity with Hamilton – an idea that originated from Daimler boss Ola Kallenius – “shows our long-term commitment to each other”.