Lewis Hamilton, Mercedes Agree on New Contract: Latest Details, Reaction, More

Lewis Hamilton has signed a three-year contract extension with Mercedes, keeping him with the Formula One team until 2018 and reportedly making him Britain's highest-paid sportsman.

Mercedes confirmed on Wednesday that Hamilton had put pen to paper on the new contract, giving both him and the team a significant boost ahead of Sunday's Monaco Grand Prix:

Hamilton commented on the deal, per Mercedes' official release: "Mercedes is my home and I couldn't be happier to be staying here for another three years. This is a company filled with real passionate racers, from the board room to the factory floor, and an incredible hunger to win. Even after the success of last year, that hunger is greater than ever—and it's the same for me, too."

Head of Mercedes-Benz Motorsport Toto Wolff explained the situation around Hamilton's contract, per Mercedes' website:

Continuity is one of the key factors for delivering success in Formula One and we now have that in place. Lewis enjoyed an historic World Championship season with Mercedes-Benz last year and it was a priority for this season to renew his contract for the next term.

We have taken the right amount of time with the process and not rushed ourselves. The result is a strong agreement that will enhance Lewis’ association with the Mercedes-Benz brand, and that recognises and respects the market value of Lewis and of Mercedes in Formula One.

Sky Sports' report indicates Hamilton is expected to earn more than any of his countrymen now that the new deal is inked. Paul Weaver of the Guardian suggests he will make £100 million across the next three seasons.

Hamilton had previously spoken hopefully of extending his relationship with Mercedes, per Sky Sports Audio, noting that a mere back-and-forth between lawyers was the sole impediment:

The 30-year-old currently sits atop the Formula One standings after getting his title defence off to a stellar start with victories in the Australian, the Chinese and the Bahrain Grands Prix. Team-mate Nico Rosberg closed the gap to 20 points with his recent win at the Spanish Grand Prix.

Hamilton is the defending champion after last season's simple title victory. He won 11 of 19 races to overcome Rosberg's threat by 67 points, as reported by Sky Sports. The pair's relationship has developed into a public rivalry, with BBC Sport even outlining them as "arch rivals" after numerous high-profile spats. Competitiveness lies at the heart of their differences.

However, Hamilton has provided Mercedes with a vote of confidence by signing the new contract. Rosberg inked a "multi-year contract extension" last season, per William Esler and James Galloway of Sky Sports. It's a symbol of the drivers' quality that, despite their bickering, Mercedes wishes to keep them together.