Mercedes could be on the Formula E grid in 2018 after signing an agreement to take an option to enter the series in season five.
According to the agreement, Mercedes may choose to be one of the maximum of 12 entries to be proposed by the championship promoter to the FIA to enter from the 2018-19 season.
Mercedes have been the dominant force in Formula One in recent years, winning the constructors' championship in 2014 and 2015, with Lewis Hamilton also taking the drivers' crown in both seasons.
"We have been watching the growth of Formula E with great interest," said Mercedes-Benz head of motorsport Toto Wolff.
"At the current time, we are looking at all the options available in the future of motor racing, and we are very pleased with an agreement that secures us an opportunity to enter the series in season five.
"Electrification will play a major role in the future of the automotive industry - racing has always been a technology R&D [research and development] platform for the motor industry, and this will make Formula E very relevant in the future."
Formula E had its inaugural season in 2014-15 and features only electric-powered cars.