Mercedes will stay in Formula 1 next year - but not commit to the full five years of the proposed Concorde Agreement.

That is the claim of Sport1 correspondents Ralf Bach and Bianca Garloff, who cited a "reliable source" in reporting that the reigning world champions will commit only to racing in 2021.

At Silverstone, Toto Wolff claimed that Mercedes was the "biggest victim" of the proposed commercial terms of the 2021-2025 deal, and that he was "not ready to sign".

However, Liberty reacted by insisting it would press ahead with its August 12 signing deadline, with a source telling Auto Motor und Sport that the sport's owner "will not allow any further delay".

Germany's Sport now claims: "Mercedes will remain as a works team in Formula 1 until at least the end of 2021."

According to Bach and Garloff, a clause in the new Concorde Agreement will allow teams to pull out at the end of each season.

"Sport1 has also learned that (Mercedes) leaving as a works team or team owner is not off the table," they said. "But because of the corona crisis, Daimler postponed the decision by a year.

"The exit clause in the new contract makes that possible," the journalists added.