A Mercedes spokesperson has confirmed that contract talks between Lewis Hamilton and team principal Toto Wolff are ongoing and assured fans "there are no reasons to be concerned".
With just two months to go before the start of the 2021 campaign, Hamilton has yet to sign a new contract with the Mercedes team and, as it stands, is technically a free agent.
Rumours recently emerged that an agreement has yet to be reached because Mercedes are reluctant to agree to Hamilton's salary demands, while he also wants a share of the team's prize money in the future.
However, a spokesperson responded to such rumours, saying that they were "pure fiction and that "there are no reasons to be concerned".
That was the last official word on the matter, but new reports have stated that progress is being made between the two parties, but nothing will be confirmed anytime soon.
"It is understood both parties have been in dialogue in recent weeks, and although discussions are progressing, a conclusion to the saga is not imminent," the Press Association have said.
"Mercedes are confident Hamilton, awarded a knighthood in the New Year Honours list, will extend his stay with the sport's all-conquering team.
"But the length of his new contract is under scrutiny, with reports the record-breaking Briton has been offered only a one-year deal."
It is thought that, despite being 36, Hamilton is keen to sign a multi-year contract ensuring he stays with Mercedes until the end of 2022 at the very least, while, with George Russell waiting in the wings, the team are more keen on a one-year rolling option.
Nevertheless, with Toto Wolff stating back in December that the deal may not be announced until pre-season testing, there is no cause for concern as of yet, and it is widely expected that a deal will ultimately be struck before the first race of 2021 in Bahrain in late March.