Mercedes-Benz is close to buying in to the Brawn GP team.
Reports first emerged about the plans this morning in The Daily Telegraph newspaper.
Insiders say the move is not an attempt by Mercedes-Benz to move away from its long-standing commitment to partner McLaren - and it is instead believed to be part of the car manufacturer's attempt to increase its presence in F1.
Next year Mercedes is expected to supply engines to McLaren, Force India, Brawn and possibly Red Bull Racing.
A McLaren-Mercedes spokesman told autosport.com: "Both McLaren and Mercedes-Benz remain extremely satisfied with our Formula One collaboration, which has netted two drivers' world championships and one constructors' world championship as well as dozens of grand prix victories."
Mercedes has denied that the plan is for a full-blown buyout of Brawn.
"It's our policy not to comment on rumours and we want to point out that we have long-standing contracts with McLaren," a spokesperson for the company told The Daily Telegraph.