Hirvonen in the reckoning for McRae's Subaru slot.

Finn Mikko Hirvonen has moved into pole position for the vacant seat at Subaru alongside new 2003 World Rally champion, Petter Solberg, following reports that Colin McRae's chances of securing the drive now 'don't look good'.

Hirvonen, who raced for Ford in 2003, running in the third 2002-spec Focus, is thought to be the more likely bet for the seat, as McRae is considered too expensive by the Japanese manufacturer.

Although Hirvonen's form was far from dazzling this season, he put in some solid performaces, most noticeably notching up his first WRC points in Cyprus - after finishing sixth, and coming home tenth in France and New Zealand.

Timo Jouhki, Hirvonen's manager, told Finnish news agency, STT yesterday: "Things have started to look better since the end of last week. It seems there is interest in hiring a young driver.

"Nothing has been signed. I hope things will be clear by next Wednesday."

McRae had been thought to be favourite for the drive, after being dumped by Citroen, however yesterday WRC boss David Richards, who also owns the Prodrive concern that runs the SWRT, revealed that the situation is now not very promising at all.

Richards told Reuters: "I believe that as far as Subaru is concerned, they have made their decision - and it is based on the financial situation of operating for next year. My understanding is that, based upon the financial situation and the costs of the championship which have increased next year, it doesn't look good at the moment."

With the championship increasing from 14 rounds to 16 in 2004, many teams are looking to save money, in order to contest the extra events. All this is bad news for McRae, who would cost considerably more than an upcoming driver such as Hirvonen.

It is ironic that this change could seal McRae's fate, especially as it was the regulations changes that restricted teams to just two-cars, that cost the Scot his Citroen drive in the first place.

An official announcement from Subaru is expected early next week - when entries for the Monte Carlo Rally, the opening round of the 2004 championship close on Wednesday December 17.

To sum-up the current rumour mill suggests, Hirvonen has a good chance of securing the deal, with McRae now less of a possibility. Harri Rovanpera may also be in the reckoning, following Peugeot's decision to drop him, although few reports have mentioned him.

Hirvonen, like McRae and Rovanpera, does not have a drive in the WRC for next year.