Toto Wolff says Mercedes were 'in a lucky situation' with its two years of control at the top in F1 and believes the gains made by Ferrari and Red Bull is a normal progression of competition.

The Mercedes team principal has consistently warned of the threat of Ferrari and in recent races Red Bull to his squad's domination of F1, having seen Red Bull profit from the team's mistakes in Spain while also narrowly missing out on victory in Monaco.

Wolff says the German manufacturer relishes the galvanised rivalry and feels it is a more normal set-up compared to its two years of unchallenged power in the sport having won 32 out of 38 races between 2014-2015, plus five out of the first six races this year.

"We are coming back to normality," Wolff said. "We were in a lucky situation for two years to be the dominant team, and now what we are seeing is that the gaps between the top three or four teams are really shrinking.

"Ultimately this is the reason why we are all here, so my feeling is that this is pretty much the normal situation now."