Sebastian Vettel was encouraged after he posted the third best time on Friday in practice for the 2014 F1 Malaysian Grand Prix and reckons Red Bull can take another 'step forward' on Saturday.

Vettel ended first practice at the Sepang International Circuit down in seventh, but improved in the afternoon and at the end was just 0.061 seconds off the pace set by Nico Rosberg, although with the top six split by less than 0.2 seconds it was very close.

"I think we had a good day," Vettel told reporters in Sepang, including Crash.net. "Obviously Friday timings are not the most important in the world. But it is good to be up there and good to be in the range of the top guys. We had a decent day, not completely smooth for both of us, Daniel [Ricciardo] and myself. There are still some things to solve on the software side, [in terms of] programming the car, which sounds wrong, but that is the way it is. I think it is the same for everyone. We all need to learn a lot."

Meanwhile, looking to the race, Vettel said 'anything is possible': "We are racing the weather! We have seen over the last couple of years what can happen," he explained.

"Also, I think, we are mostly racing ourselves because we are not yet at the stage where everything is 100 per cent reliable. We are, however, getting better every day - every lap seems to help us. I think we can make a step forward tomorrow and based on today, it was quite okay. We will see what we can do. But surely we are not the favourites going into the race."

"[Overall] the best thing about today is that the car seems to be competitive," he added.

"We know in terms of reliability we have to do a lot of catching up. But that is the name of the game. It is what we are here for," concluded the four-time F1 World Champion.

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