World champion Jenson Button is closing on a switch to McLaren-Mercedes in a deal that should be completed later this week.
A report in The Guardian newspaper said that, following a visit to the team's Woking base last week, further negotiations have taken place between Button and McLaren.
It is reported that a deal has been offered to Button by McLaren and, while he has not yet agreed it, his hopes of staying at the rebranded Mercedes Grand Prix team are minimal.
Brawn/Mercedes, the team that took Button to his world title, is unwilling to offer more than a £4m-per-year deal, around half of what Button's management is requesting.
Despite Mercedes taking over the team, chief executive officer Nick Fry emphasised that nothing had changed in the Button discussions.
"I'm sorry to say, it's not going to change anything," Fry told the BBC.
"We're running with a budget that is probably less than most of the others have spent and that's what Mercedes likes. In these financially constrained times, you do have to tighten your belt.