Vettel came second in the 2017 F1 Drivers’ Championship to Hamilton.

Ferrari also lost out on the Constructors’ title to Mercedes.

Vettel had led the championship by 14 points at one stage but the tide turned after the summer break, as Hamilton cantered to a fourth career title.

But Ferrari were still deemed to have had a successful season and are tipped to rival Mercedes for the championship in 2018.

And four-time title holder Vettel reckons his team are in the right place to surpass the Silver Arrows.

“Obviously we had two or three races that turned out to be very costly for different reasons and Mercedes have been very, very strong and consistent all year,” Vettel said.

“In the end we weren’t good enough to take it to the last race and take the championship.

“I think we know what we need to do.

“There are lessons that were obvious, some were a bit more hidden but I’m sure we’ll dig deep enough and try to find all of them.

“If you look where we were in 2016, I think we did the biggest step out of all and from winter testing we were right there.

“Historically we lost out as the season progressed but this year we still had so much potential, so many big steps, but we managed to do them and stay in the fight.”

Vettel will race alongside Kimi Raikkonen again next year, with Hamilton partnered by Valtteri Bottas.

Red Bull are also expected to eat into Mercedes’ advantage after a strong end of the season.

Vettel, 30, has been asked in recent weeks if he has any plans to retire soon.

Speaking to Spanish newspaper AS, he said: “There is no concrete answer.

“The moment in which I no longer have fun (is when I will leave).

“That’s because there are many drivers who would still be having fun and would need a seat.”