Toto Wolff will extend his role as team principal and chief executive of the Mercedes Formula One team for a further three years.

The team confirmed the deal as part of a re-structuring which will also see INEOS become a one-third shareholder within the team.

The deal comes amid increasing suggestions that the team is set to imminently announce a new contract for reigning world drivers' champion Lewis Hamilton.

Wolff said: "I am pleased to begin this new chapter for the Mercedes-AMG Petronas F1 Team.

"This team is like a family for me. We have been through so many highs and lows together that I cannot imagine working with a better group of people in this sport – and I am very happy to continue together into this new era."

Under the new arrangement, Daimler will reduce its current 60% holding and Wolff increase his existing portion to create three equal partners within the team.

Mercedes issued a tweet shortly before 10pm on Thursday with the hashtag "announce" and a quote from Hamilton emphasising his desire to stay with the team.

INEOS previously announced a deal to become a 'principal partner’ of the Mercedes F1 team in February.

INEOS chairman Sir Jim Ratcliffe said: "When we entered Formula One earlier this year, we chose to do so with a Mercedes team that had set new benchmarks, and since then we have been in discussions about how we could increase our involvement.

"This is a unique opportunity to make a financial investment in a team at the very top of its game, but which still has rich potential to grow in the future."