£120m contract to make Hamilton the best-paid F1 driver

Formula One - Spanish Grand Prix - Race Day - Circuit de Barcelona-Catalunya

Lewis Hamilton has hinted that an arduous year of contract negotiations with his team is coming to an end, with the Brit set to announce his new deal at the Monaco Grand Prix later this month.

It's believed that the two-time world champion will be signing a contract with the team worth £120 million, meaning that he will take home around £40 million a year. This will make him the highest paid driver on the grid, ahead of Ferrari drivers Sebastian Vettel (£33.4 million) and Fernando Alonso (£25.5 million), who currently hold the most lucrative deals.

The process has been so painful because the Mercedes board in Stuttgart has been unwilling to alter its pay structure, reports the Daily Mail. After last weekend's race in Spain, Hamilton who is currently leading the championship by 20 points, said: "I will have some news for you in Monaco..."

If this contract goes ahead as expected, Hamilton will receive nearly double his current salary of around £20.9 million. Already he is being paid more than twice what his teammate Nico Rosberg, second in the championship so far this season receives at a modest – in comparison – £9.4 million salary.

Hamilton has also made requests such as holding onto his image rights, his trophies and his winning cars – something fellow Brit and world champion Nigel Mansell was famous for demanding. This is something the Mercedes driver has previously thrown his toys out of the pram about, and he is known for being disgruntled about annual trophies, which are retained by the race organisers to be issued again the following year.