Lewis Hamilton would be willing to accept a pay cut in order to reach a new deal with Mercedes, according to the Spanish branch of Motorsport.com.

Reporting on the ongoing negotiations, the outlet claimed that the seven-time world champion would then offer other conditions in return.

For instance, bonuses he receives for winning the title would be doubled, while the contract would likely run until the end of 2022 with an option for a one-year extension.

In addition to these financial demands, Hamilton is also said to have requested a future role in the structure of Daimler [Mercedes' parent company], with the aim of continuing his work for greater diversity in Formula One.

The news comes after a report from Italy claimed that negotiations had ground to a halt following a difficult weekend at the Monaco Grand Prix just two weeks ago.

According to the Italian version of Motorsport.com, the fallout from that race resulted in 'cracks' appearing in the relationship, making any near-future agreement over a new deal unlikely.

However, GPblog.com revealed this week that both Hamilton and Mercedes team boss Toto Wolff want to get a new contract in place before the summer.

Hamilton currently sits second in the Driver Standings and is just four points behind leader Max Verstappen.

He had an opportunity to finish the Azerbaijan Grand Prix on top of the pile after his rival’s puncture and subsequent crash.

However, he made a mistake in the aftermath of that incident and ultimately finished 15th, while his teammate Valtteri Bottas struggled all weekend in the other car.

The outcome led Wolff to label Mercedes' recent performances 'not acceptable', as they leave the Silver Arrows facing arguably their toughest fight in the turbo-hybrid era with Red Bull providing a genuine challenge for both the Drivers' and Constructors' titles.

"There's just so much we need to improve that I just want to get on it right now to make sure we are able to compete for this championship," Wolff told the BBC.

Hamilton, who became the most decorated driver Formula 1 has ever seen last year, logging more wins, more poles and more podiums than anyone else, will be hoping to get his campaign back on track when he heads to Circuit Paul Ricard for the French Grand Prix next weekend.

Last season he equalled Michael Schumacher's record seven world titles by winning his sixth championship in seven years.