The deal is understood to be worth up to €50m (£40m) and will keep Verstappen, 24, at Red Bull for at least the next six years. 

Verstappen’s existing Red Bull deal was due to expire at the end of the 2023 season but the new agreement rules out the prospect of a switch to a rival team in the near future. 

After beating Lewis Hamilton to clinch his maiden world title in last year’s controversial season finale in Abu Dhabi, the Dutchman professed his love for Red Bull and said he wanted to stay with the team “for the rest of my life”. 

“I really enjoy being part of the Oracle Red Bull Racing Team, so choosing to stay to the 2028 season was an easy decision," Verstappen said. "I love this team and last year was simply incredible, our goal since we came together in 2016 was to win the championship and we have done that, so now it’s about keeping the number one on the car long-term.”

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Red Bull team principal Christian Horner said: “To have Max signed with Oracle Red Bull Racing through to the end of 2028 is a real statement of intent. Our immediate focus is on retaining Max’s World Championship title, but this deal also shows he is a part of the team’s long-term planning.

"With the Red Bull Powertrains division working towards the new engine regulations for 2026 we wanted to make sure we had the best driver on the grid secured for that car.”

Such a pay increase will move Verstappen to the top end of F1’s earning list and put him on a salary par with seven-time world champion Hamilton, whose contract is reportedly worth around £40m a year before endorsements.

Verstappen was signed by Red Bull part-way through his first season of car racing in European Formula 3 in 2014. He became the youngest-ever grand prix driver when he made his F1 debut with Toro Rosso the following year, aged just 17. 

Verstappen famously won on his first start with Red Bull at the 2016 Spanish Grand Prix and he has gone on to claim a further 19 victories over the following five seasons. 

In winning the 2021 F1 world title, Verstappen became Red Bull’s second world champion and the first since Sebastian Vettel in 2013. 

He will begin his F1 title defence on March 20 at the season-opening Bahrain Grand Prix.