Williams Racing has offered Carlos Sainz a reported €30 million per season contract extension, according to motor racing publications.
The Grove-based team presented the multi-million euro offer, which includes performance-related clauses, to retain the Spaniard beyond his current contract expiring at the end of 2026.
Sainz and teammate Alex Albon currently sit 15th and 16th in the drivers' championship, with Williams holding just 11 points in the constructors' standings.
The team has struggled with vehicle balance and downforce production under the new regulations.
The contract discussions follow a controversial collision at the Hungarian Grand Prix, where Sainz collided with McLaren driver Oscar Piastri while being lapped.
Piastri expressed strong dissatisfaction, calling the incident "unacceptable" and "one of the stupidest things I've ever seen on a racetrack."
Piastri also questioned Sainz's conduct given his role within the Grand Prix Drivers' Association. "He's quite critical of others," Piastri said.
"Others have already told him he's frustrating on the track.
Then when you do something like that, I think maybe you should take a good look at yourself."
Sainz defended his actions, attributing the incident to visibility and blue flag notification issues on his steering wheel display.
"I'm surprised he got into that position," Sainz said. "I think he knows I didn't see him."
The four-time grand prix winner rejected calls to apologize, calling it "a normal racing incident."
Sainz Criticizes Team Performance
Sainz openly criticized the team's operational and car performance across the first 11 races. "Bad, very bad, disappointing," he said.
"It's far below expectations and where we want to be as a team." Despite the lack of competitive downforce, Sainz noted his individual performance remained strong.
"I've had a very strong first half of the year," he said. "The car isn't performing, and as a team, we have to take a big step forward."
Addressing Aston Martin's turnaround, Sainz argued it should serve as inspiration.
"If anything for me, it just proves that when you understand your limitations, the carrot is there for us to prove we can do the same," he said.
"Aston went from having worse downforce to having the best midfield downforce right now."
Sainz acknowledged that his timeline for winning again with Williams has shifted.
"My timeline for how long it would take me to win a race again has been delayed by a year or two," he said.
"I need to readapt my thinking into portraying myself now in three to four years' time." He expressed confidence in the team's long-term vision despite current struggles.
Regarding the contract decision, Sainz said he would evaluate options during the summer break. "I cannot give you a date," he said.
"We have to look at it calmly."
Williams team principal James Vowles defended Sainz over the incident while taking responsibility for communication errors.
"We could have done a better job and warned him about Piastri," Vowles said. He reiterated commitment to both drivers, acknowledging the team's shortcomings.
"This winter has unexpectedly highlighted all our shortcomings," he said. "We must ensure everything is in order for 2027 and beyond."
Former Formula 1 driver Ralf Schumacher argued on Sky Deutschland that Sainz deserved a grid penalty for the collision.
"Otherwise, this will set a precedent," Schumacher said.
Williams is scheduled to introduce its next major car upgrade at the Azerbaijan Grand Prix after the summer break.