Sports Mole rounds up all of the latest news regarding Formula 1 on Wednesday, October 7.

Wednesday morning's Formula 1 news roundup:

Carey says F1 race deal reached with Rio de Janeiro

Chase Carey has confirmed that Rio de Janeiro is on course to join the Formula 1 calendar.

There have been rumours for some time that a new permanent circuit in Deodoro, a neighbourhood in Rio's west zone, could replace Sao Paulo as F1's Brazilian GP host.

Now, O Diario Motorsport, a specialist Brazilian publication, claims F1 CEO Chase Carey has sent a letter to acting Rio governor Claudio Castro.

The letter confirms that Liberty Media has reached an agreement with the new race promoter Rio Motorsports.

"I am writing to update you that we have now finalised the agreements for a race with Rio Motorsports LLC, which will host, organise and promote Formula 1 events in Rio de Janeiro," Carey reportedly wrote.

"These agreements are ready for execution and announcement by Formula 1 once all necessary licenses have been issued by the relevant authorities," he added.

Both authorities mentioned by Carey - INEA and CECA - relate to environmental approval for the F1 venue, amid concerns about the potential impact on the nearby Comboata forest ecosystem.

Mateschitz will decide engine solution - Horner

Red Bull wants "clarity" about its engine solution for 2022 before the end of the year.

That is the news from team boss Christian Horner, who admitted that reuniting with Renault might even be a possibility for 2022.

Last Friday, Honda stunned the Formula 1 world by announcing that it will quit the sport at the end of next year, leaving Red Bull and Alpha Tauri needing another solution.

With Mercedes and Ferrari not appearing to be realistic alternatives, it is possible that Red Bull's only move might be to rely on the regulations requiring Renault to supply another team if necessary.

Horner indicated to Servus TV that a Renault reunion might not be bad news.

"Renault has changed since we split up," he said.

"The new CEO has provided a breath of fresh air and changes. They are moving forwards."

There have been rumours that Volkswagen or one of its brands - notably Porsche - might step into become Red Bull's new works supplier.

Horner doubts it.

"The start-up costs for a new manufacturer with the current regulations are simply far too high," he said. "So there won't be a new manufacturer until a new engine - possibly 2026 - comes on the market.

"The FIA and Liberty have to get that under control. They did a good job with the chassis, now we need homologated engines and a budget cap for the power units as well," added Horner.

There are rumours that Horner was in Austria for the Servus TV interview while meeting with Dr Helmut Marko and team owner Dietrich Mateschitz.

It is believed they are considering taking over the intellectual property of Honda's engine and potentially rebranding it with the involvement of Milton-Keynes-based Mugen.

"We need clarity before the end of the year," Horner insists.

"Naturally, we are keeping our options open. For us it's obviously important that we have enough power to be able to challenge Mercedes in the coming years.

"It is of course Mr Mateschitz who will ultimately decide how to proceed."

More news from Formula 1:

Alonso to test 2020 Renault next week
Fernando Alonso looks set to make his debut in Renault's 2020 car next week. Read more.

Covid era makes F1 debut easier for Schumacher
F1's current covid restrictions are a blessing for Mick Schumacher ahead of his race weekend debut at the Nurburgring. Read more.

Annual race alternation could revive German GP
Nurburgring boss Mirco Markfort is hoping this weekend's race at the famous venue boosts the chances of a proper return to the Formula 1 calendar. Read more.

No 'engine clause' in Verstappen contract - Horner
Christian Horner has played down rumours Red Bull could lose Max Verstappen in the wake of Honda's shock decision to quit Formula 1. Read more.

Mercedes committed to F1 after Honda exit news
Mercedes has reiterated its commitment to Formula 1, allaying fears that the sport may be about to lose more teams or manufacturers. Read more.