Mercedes-Benz Grand Prix Ltd (MGP) and Formula E Operations Ltd have signed an agreement by which Mercedes have taken an option to enter the FIA Formula E Championship in season five.

According to the option agreement, Mercedes may choose to be one of the maximum of 12 entries to be proposed by the championship promoter to the FIA to enter from the 2018/19 season.

Mercedes could take one of the two new entries that will be allocated in season five - subject to approval of the FIA - when the all-electric racing series goes from the current format of two cars per driver, to a single car for the entire event.

The current 10 teams in Formula E are all expected to continue in season five and beyond in their existing format, or joining forces with other OEM’s.

Alejandro Agag, CEO of Formula E, said: “We are delighted to confirm that we have reserved one of our two new entries in season five for MGP. Formula E wants to become the platform where car manufacturers test and develop the technologies that they will then introduce on their road cars. Having the chance to include a brand like Mercedes in our championship in the future would be a major boost to achieve that objective. Formula E is becoming an exciting mix of consolidated manufacturers like Renault, Citroen-DS, Audi, Mahindra or Jaguar, and new futuristic brands like Faraday Future, NextEV, or the likes of major component manufacturers like Schaeffler and ZF. Mercedes would be a great addition to that growing line-up.”

Toto Wolff, Head of Mercedes-Benz Motorsport, said: “We have been watching the growth of Formula E with great interest. At the current time, we are looking at all the options available in the future of motor racing, and we are very pleased with an agreement that secures us an opportunity to enter the series in season five. Electrification will play a major role in the future of the automotive industry - racing has always been a technology R&D platform for the motor industry, and this will make Formula E very relevant in the future.”