Sainz's contract renewal has been inevitable following his impressive first year for Ferrari in 2021.

The Spaniard out-scored teammate Charles Leclerc across the duration of last season, leading to frequent rumours in the F1 paddock that he would be rewarded with a new deal.

Sainz is still without a grand prix victory in F1 but has been one of the sport's most consistent performers in recent seasons.

Speaking of the news, Sainz said: "I am very happy to have renewed my contract with Scuderia Ferrari. I have always said that there is no better Formula 1 team to race for and after over a year with them, I can confirm that putting on this race suit and representing this team is unique and incomparable. My first season at Maranello was solid and constructive, with the whole group progressing together. The result of all that work has been clear to see so far season.

"I feel strengthened by this renewed show of confidence in me and now I can’t wait to get in the car, to do my best for Ferrari and to give its fans plenty to cheer about. The F1-75 is proving to be a front-runner, which can allow me to chase my goals on track, starting with taking my first Formula 1 win."

Sainz will remain alongside current F1 championship leader Charles Leclerc, whose contract also runs out at the end of 2024.

Ferrari team principal Mattia Binotto believes the Italian manufacturer has the best driver line-up on the grid.

"I have said several times that I believe we have the best driver pairing in Formula 1 and so, with every passing race, it seemed a completely natural step to extend Carlos’ contract, thus ensuring stability and continuity. In his time so far with the team, he has proved to have the talent we expected from him, delivering impressive results and making the most of all opportunities.

"Outside the car, he is a hard worker with an eye for the smallest detail, which has helped the whole group to improve and progress. Together, we can aim for ambitious targets and I’m sure that, along with Charles, he can play a significant part in fuelling the Ferrari legend and will write new chapters in the history of our team."

Why the new deal makes sense for Sainz and Ferrari

It was a no-brainer for Ferrari to retain Sainz following his fantastic maiden year with the team.

While the championship standings didn't tell the full story, he still finished ahead of teammate Leclerc and McLaren's Lando Norris, who enjoyed his best season in F1. 

Sainz is quick, consistent, and the perfect driver to have alongside Leclerc.

It's fair to say that Leclerc has that edge in raw speed but Sainz is capable of assisting his teammate and ensuring Ferrari takes its first constructors' crown since 2007. 

Sainz's first three races in 2022 have been underwhelming relative to Leclerc, but it's too soon to write him off just yet.

The Spaniard finished second in the season-opening Bahrain Grand Prix to give Ferrari its first 1-2 finish since 2019.

Third-place in Jeddah was the maximum given Max Verstappen and Leclerc's superior pace.

The Australian Grand Prix was unfortunate for Sainz as without the untimely red flag period, he'd have taken provisional pole position. 

Instead, his lap didn't count and he was put on the back foot for the rest of the weekend.

However, Sainz does need a victory or two soon to avoid being pushed into number two driver territory and emerge as a title contender.