Sebastian Vettel says the battle for the podium is set to be a close one between Ferrari, Red Bull and Williams as he edged out Daniel Ricciardo for third on the grid for the Hungarian Grand Prix.

With Red Bull enjoying an upturn in recent form around the high-downforce Hungaroring, Vettel found himself under threat for his assumed 'best of the rest' spot in third behind the Mercedes'.

Holding onto the position by just two hundredths of a second from his former team-mate, though Vettel is not entirely ruling out a challenge to Mercedes ahead, he is more concerned by the threat posed by Red Bull and even Williams behind him.

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"On this track there are a lot of things happening so maybe we can do something against these guys but I expect to tough race from the Williams and the Red Bulls.

"It will be tight especially with the Red Bulls as they showed very strong pace yesterday but we managed to stay ahead so that is good. I think Red Bulls are a lot closer and you look at Silverstone then it was expected. I expect them to be strong tomorrow.

"We managed to out qualify them which means we are quicker. Hopefully we will get a good comparison in the race tomorrow and come out on top."