Valtteri Bottas believes that this weekend's Hungarian Grand Prix will be a "great test" for the Mercedes Formula 1 team as it goes toe-to-toe with title rival Ferrari.

Mercedes has made significant progress with its W08 car in recent weeks, soundly outpacing Ferrari at each of the last four races to open up a healthy points lead in the constructors' championship.

The tight and twisting nature of the Hungaroring in Budapest should suit Ferrari well, yet if Mercedes can be competitive, Bottas believes it will bode well for the team's title hopes going forward.

"I think it's going to be a great test for our car, if we are competitive here against Ferrari," Bottas said.

"I think even Red Bull should be quite competitive around here. If we can be the quickest car here, that will definitely boost our confidence a little bit for the year ahead.

"But like I said before, it's still a long year ahead and we still need to continue to develop.

"This will be an interesting weekend for us to see how we do. Hopefully it will be good but we're expecting a close battle, closer than in the last few races."