Reigning Formula One champion Lewis Hamilton has signed a new contract at Mercedes.

The 33-year-old British driver has put pen to paper on a two-year contract extension with the German manufacturer until 2020.

According to the BBC, his new contract is worth £30m per year and could rise to £40m depending on bonuses.

On signing a new contract, the four-time world champion said: He said: “It’s good to put pen to paper, announce it and then get on with business as usual.”

“I have been part of the Mercedes racing family for 20 years and I have never been happier inside a team than I am right now.

“We are on the same wavelength both on and off track – and I am looking forward to winning more in the future and shining even more light on the three-pointed star. I’m very confident that Mercedes is the right place to be over the coming years.” He concluded.

Lewis Hamilton won the world championship with Mercedes three times (2014, 2015 and 2017).

He is presently eight points behind leader Sebastian Vettel in the race for the 2018 Formula One championship ahead of this weekend’s German Grand Prix (GP).

The German GP marks the halfway point of the current F1 season.