Red Bull are reluctant to meet Sergio Perez's demand of a multi-year contract - as they consider handing Alex Albon a fairytale return to his old seat.
Perez has done his chances of earning a new deal no harm with a strong start to the new season. He has three podium finishes to show for the first four races while his qualifying form, which was so poor in 2023, has dramatically improved.
Red Bull's current stance on that second seat alongside Max Verstappen is that it is Perez's to lose. The 34-year-old has driven himself back into contention for a 2025 berth with F1's top team.
But not, it seems, unless he caves on one of his key contract demands. The Mexican wants a multi-year deal to secure his place on the F1 grid in 2026, but Red Bull would prefer to keep the seat free in the long term.
And adviser Helmut Marko, who has significant influence over who drives for both of Red Bull's F1 teams, said after Sunday's Japanese Grand Prix why he is reluctant to give Perez the security he wants. "If he has a secure contract for two years, there is a risk that he will slack off," said the Austrian.
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The other reason why Red Bull don't want to give Perez a 2026 deal is because they are exploring the prospect of bringing Albon back into the fold. The British-Thai racer was axed after the 2020 season and replaced by Perez, leaving him without a drive for the following year.
He returned to the F1 grid with Williams in 2022, in a deal brokered by Christian Horner. His impressive performances earned him a long-term contract which ended Albon's formal relationship with Red Bull, and his stellar performances last year have thrust him back into the conversation for top seats again.
Williams insist Albon has a contract for 2025 and do not want to let their star driver leave. Albon has a certain loyalty to the Oxfordshire-based team but knows that, aged 28, he is approaching his prime and wants to spend it competing for race wins and podiums rather than languishing at the back of the grid.
Red Bull have not yet extended a formal offer to Albon, contrary to some reports. However, it is understood that the F1 champions have asked for first refusal on a 2026 contract to put them in a strong position to snap him up if his impressive form continues.
If it is a plan they continue to pursue, Red Bull will need a short-term option for that seat next year. If he is willing to accept only a 12-month extension and the possibility of being a stop-gap until Albon arrives, then Perez may yet land a new deal after all.
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