Lewis Hamilton signs new Mercedes contract to become Britian's biggest sporting earner

Lewis Hamilton's long-running contract saga is over after Mercedes confirmed the British driver has finally agreed a new deal.

Although Mercedes did not reveal specifics of Hamilton's contract extension it is understood that the four-time world champion will earn up to £40million a year until the end of 2020.

The 33-year-old Englishman's new contract cements his status as Britain's biggest sporting earner as well as the best-paid driver in Formula One history.

Hamilton said on the Mercedes website: "This contract extension has basically been a formality since Toto and I sat down during the winter, so 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.

"Although we have enjoyed so much success together since 2013, Mercedes is hungrier than ever - from Dr Zetsche and the board members at the top of Daimler, through (team boss) Toto (Wolff) and the team management, to every single person I meet in the corridors of Brixworth and Brackley.

"The competitive passion that burns bright inside me is shared by every single member of this group - always chasing the next improvement and digging even deeper to make sure we come out on top. I can't wait to see what we can achieve together in the next two-and-a-half seasons.