Mercedes Chairman and CEO Ora Karenius reportedly approved Max Verstappen’s signature.
Carenius gave Mercedes a “green light” to complete the blockbuster work of Red Bull’s four-time world champion, according to Italian newspaper La Gazzetta delo Sports.
The fees required to trigger the release of Verstappen’s contract, which runs until the end of 2028, are said to be in the 120 million euro area.
However, the report acknowledges that Verstappen’s exit clause remains “the biggest obstacle to overcome” to ensure that the transfer is removed.
Verstappen is known to have performance-related clauses in his current deal.
There are conflicting reports as to whether Verstappen must be outside the top three or top four at the F1 drivers’ world championships in order to activate the clause by the end of the Hungarian Ligue Rampuri in early August.
The 27-year-old Dutch is currently third, 18 points ahead of Mercedes’ George Russell.
Russell was out of contract at the end of the year and despite his impressive form, he has yet to be extended from Mercedes.
La Gazzetta’s report adds that Verstappen can find a way out of the 2026 Red Bull contract if his release clause is not triggered.
The rumors escalated after it was revealed that Verstappen and Mercedes boss Toto Wolff was in Sardinia last week.
Former Formula 1 driver critic Ralph Schumacher claimed he had heard that the pair would hold a meeting to discuss future options.
“It’s no coincidence that two yachts are cruising from Sardinia this week,” he told Formel1.de.
“And from what I’ve heard, it’s likely that they drank coffee together.”
This comes after Verstappen’s boss, Christian Horner, was fired by Red Bull after 20 years in charge of the Milton Keynes outfit.
Red Bull’s decision to dismiss Horner is suggested to be part of a ploy to persuade Verstappen to stay in the long-standing feud between the former team principal and Verstappen’s father Joss.