Date: 1st April 2015 at 9:50am
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Mercedes director Toto Wolff insists that the deal that is set to be announced with Lewis Hamilton is within the parameters of Mercedes pay structure.

Lewis Hamilton’s new deal with Mercedes is expected to be announced this week.

Ahead of the Malaysia Grand Prix it was said that Hamilton and Mercedes had completed their contract negotiations over the 2014 Formula One World Champions new contract.

It was then all down to the lawyers after Hamilton had represented himself during the negotiations after parting company with his XIX Entertainment management team last year.

Hamilton is currently out-of-contract at the end of 2015 and this has prompted numerous approaches from Ferrari according to reports in the media.

However the two-time Formula One World Champion has always insisted that he was happy with Mercedes and a new deal has been all but concluded.

Hamilton had been rumoured to be chasing a £150million three-year-deal, something that Mercedes boss Toto Wolff emphatically denied.

?I think these numbers you must question where you get your drugs from, I don?t want to even comment on this nonsense.? he told Sky Sports.

Instead whilst Sky Sports have reported that his new deal will be ‘more lucrative terms than the £20m-a-year he agreed’ when he left McLaren three-years ago, it’s nowhere near a deal that would have seen him earn close to £1million a week.

The BBC have reported more detailed contract figures.

The BBC have quoted a basic salary of £20.9million-a-year, but that includes various bonuses which depending on the number of race victories and potential future Formula One championships could take his earnings to in-excess of £27million.

Despite the drop from the £50million deal, that contract would see Hamilton almost on parity with former two-time Formula One World Champion Fernando Alonso at McLaren Honda and former four-time F1 title holder Sebastian Vettel at Ferrari.

Alonso is reportedly earning £27million-a-year at McLaren, whilst Vettel will earn £33.7million during his first season at Ferrari, his basic wage then drops after the first season to £20.4million with potential bonuses boosting his earnings back to in-excess of £30million.

?Pay structure is extremely important, As a team we need to be commercially viable and it needs to make sense. This is the basis of all discussions and of all negotiations. Wolff told Sky Sports.

?The pay structure was never an issue between Lewis and the team. We have the same expectations. Lewis knows his value and we know his value and that was all very positive and very aligned.?