'Ferrari offers Vettel new contract but with reduced salary'

Vettel is currently in the last year of his deal at Ferrari. The four-time champion had one of his worst seasons in 2019: he won just one Grand Prix and was on pole position twice. Teammate Charles Leclerc, who is already locked down at Ferrari until 2024, was on pole no less than seven times and won two Grands Prix.

Vettel's current salary is 33 million euros a year. Sky Sports Italia know Vettel's new contract will be less than this, although the publication does not know how big the former Red Bull driver's paycut will be exactly.

"In 2017 things looked very different for Vettel," explains the Italian source about the current negotiating position of Vettel. "With Sergio Marchionne he agreed to sign up for three seasons, for a total value of 100 million euros. Those years he was undoubtedly the leader of the team."

Now that Vettel has been defeated by Leclerc in 2019, the German is in a much more vulnerable negotiating position, but the alternatives are considerably worse, in case he doesn't want to swallow his pride and he walks out the door.

"If Vettel refuses, however, that doesn't necessarily mean he can a seat somewhere else," warns Sky Italia.

"The next few months will be important for Vettel, his future is at stake without him being able to prove his worth on the track. For the first time in his life he will enter the contract meeting without having the power in his hands".