F1: Lewis Hamilton-Mercedes on track to announce £60m two-year deal - report

Lewis Hamilton has made no secret of his desire to continue in Formula 1 beyond the 2021 season. The British racing driver has begun negotiations with his Mercedes team about a new deal, with talks said to be progressing well.

The seven-time F1 world champion has been with the Mercedes team since 2013, and won six of his seven Drivers' championship titles with the Silver Arrows. Hamilton is keen to continue in the sport and drive the 2022 cars, which will usher in a new era after an overhaul of the current regulations.

Mercedes team principal Toto Wolff has made it clear that he wants Hamilton to remain with the team and is keen to sort out the new deal at the earliest. He wants to avoid last season's situation when Hamilton was a free agent until February before he agreed to a one-year deal for the 2021 season.

According to the Daily Mail, the talks between Wolff and Hamilton over a new deal are progressing well and could be complete before the summer break in August. It is expected to be a two-year deal worth £30 million annually.

"It is all moving along well and looks as if it will be sorted before the summer break," a source said, as quoted by the Daily Mail.

Earlier in the year, it was claimed that Hamilton was ready to take a pay cut to extend his stay with Mercedes next season. However, the Briton wanted the team to double his bonus payment in the event that he won another world title, while also promising him a future role with parent company Daimler.

While Hamilton's future with Mercedes will soon be secure going into the 2022 season, they will have to make a decision with regards to his teammate. Wolff will have to decide whether to retain the services of current teammate Valtteri Bottas or promote junior driver George Russell, who currently drives for Williams.

Any decision on Hamilton's future teammate is expected to be made once the Briton puts pen-to-paper on his new deal. Wolff has remained coy when asked about Bottas continuing with the team in 2022.

"We need to evaluate the situation for the future. Valtteri had some really good weekends but he also had some off weekends," Wolff said, as quoted on Planet F1. "We just need to minimise those, and then we will take a decision."