Williams will continue to use Mercedes’ power units in Formula 1 through 2025 after a new five-year deal was reached between the respective parties.
Williams switched to Mercedes power for the start of the hybrid era in 2014, signing a seven-year contract, and finished third in the Constructors’ Championship across 2014 and 2015.
It is understood that Williams briefly held discussions with Renault, amid its Mercedes deal expiring at the end of 2020, but it has now signed an extension to remain powered by the German car giant.
Williams will continue to manufacture its own transmission.
"We have enjoyed a wonderful partnership with Mercedes-Benz over the past six years of what was originally a seven-year agreement, and so we are delighted to be continuing working with them for a further five years from 2021,” said deputy team boss Claire Williams.
“Mercedes-Benz has been one of the sport's most successful engine suppliers and we believe that they will continue to have an extremely competitive engine package going forwards.
“Over our time with them they have become a real friend of the team, and we look forward to working with Mercedes-AMG HPP in future.”
Williams has slumped to last place in the Constructors’ Championship across the past two years but Mercedes chief Toto Wolff has backed the outfit to recover long-term.
“Williams is one of the iconic brands in Formula 1 and we at Mercedes are proud to count them as part of our motorsport family,” said Wolff, who held a shareholding position at Williams before becoming Mercedes team boss.
“They have been through some tough times recently but that has only served to demonstrate their resilience and strength of character as they battle back to where they belong on the grid.
“I am certain that the outlook for independent teams is bright under the financial regulations that will be introduced from 2021 and we are delighted to continue our partnership with Williams into that new era of our sport.”
Mercedes' other customer, Racing Point, is also expected to renew long-term with the manufacturer, extending a partnership that began in 2009.
