Ferrari will not extend Lewis Hamilton's agreement past 2026 without substantial performance gains.
The Italian racing team appears to have reached this position regarding the seven-time champion's future following a challenging inaugural campaign.
The 40-year-old British driver's existing arrangement continues until the conclusion of 2026.
However, ESPN report the Scuderia has no intention of presenting fresh terms once this period ends.
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Hamilton's transition from Mercedes has fallen short of expectations during his debut year.
The disconnect between the British racing legend and the Italian outfit has become increasingly apparent throughout recent months, insiders suggest.
Lewis Hamilton looks set to leave Ferrari next year unless he drastically improves his performances
|REUTERS
The veteran racer has yet to secure a podium position through 20 races this season, sitting sixth in the championship standings with 146 points.
His team-mate Charles Leclerc maintains a commanding 64-point advantage whilst occupying fifth place overall.
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"Something has not clicked between the British driver and Italian team this year," sources revealed, highlighting Hamilton's struggles to match Leclerc's pace throughout the campaign.
The Briton's sole success arrived during March's Chinese Grand Prix Sprint event. His most recent outing in Mexico City saw him qualify third before receiving a 10-second penalty and ultimately finishing eighth.
Reports describe the contract speculation as a "premature prediction," though the performance gap remains concerning for Ferrari management.
Oliver Bearman has emerged as a leading candidate to succeed Hamilton, with the 20-year-old Ferrari academy prospect delivering an impressive fourth-place result at the Mexican Grand Prix.
Ferrari are demanding better results from Lewis Hamilton
|REUTERS
The British youngster matched Haas's finest-ever Formula 1 finish, becoming only the second driver to achieve this feat for the American team.
"Of course, that's my goal in life," Bearman stated when questioned about potentially racing for Ferrari at September's Italian Grand Prix.
"I got a taste of doing that when I got the call-up last year, and that is my motivation in life, really, to hopefully one day be able to do that."
The young driver acknowledged his current commitments remain with Haas, where he must demonstrate consistency before advancing to a premier seat.
Hamilton faces the prospect of becoming 42 years old when the 2027 season commences, marking territory not witnessed since Jack Brabham's victory in South Africa during 1970.
No driver has claimed race honours at such an advanced age in over five decades.
Ferrari's forthcoming 2026 regulations challenger could prove pivotal in determining the Briton's fate.
The new machine may either provide Hamilton with the platform to demonstrate his enduring capabilities or prompt the Scuderia to pursue younger alternatives.
Sky Sports commentator Martin Brundle endorsed Bearman's credentials following Mexico, declaring: "The moment that there's a seat at Ferrari for whatever reason, then Bearman should be in it as far as I'm concerned."