Nico Rosberg insists he is pleased to have Lewis Hamilton racing alongside him in 2016 following the confirmation of his new three-year deal at Mercedes.

Following months of negotiations, Mercedes finally announced Hamilton will continue with the team until the end of the 2018 season, ensuring the two drivers will enter into at least their fourth consecutive year as team-mates pending any extension to Rosberg's current deal.

Indeed, Rosberg says he is happy to have Hamilton staying on at Mercedes since it challenges him to perform better, even if he admits his own personal targets and those of the team can sometimes make their relationship 'complicated'.

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"I congratulated Lewis," he said. "I am sure it is a very exciting moment to sign a contract. We have a great battle, that is what racing is about.

"It is a complicated battle," he continued. "It is internal and we have to think about the team and at the same time think about beating each other. It is always going to be complicated as both of us want to win, so there are ups and downs.

"At the moment it is a neutral relationship, so it is working OK between us and we are really pushing each other. It shouldn't be underestimated how we are pushing each other to higher and higher levels all the time. It is also great for the team, this internal battle. It is good to know now that future is going to be like that."