Cadillac now considering a Sergio Perez contract agreement that Red Bull were never willing to offer

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Although nothing is set in stone yet, it appears as though Sergio Perez is going to be in the Formula 1 paddock next season.

Sergio Perez hasn’t been spotted at a race since his Red Bull contract was cancelled at the end of the 2024 Formula 1 season.

The Mexican driver fell short of the expectations of team principal Christian Horner, and despite Perez signing a deal with Red Bull that could have been extended to the end of the 2026 campaign, he was let go after the final race in Abu Dhabi.

Liam Lawson was promoted in his place, but just two races later, he was gone as well, and Yuki Tsunoda has been struggling at Red Bull ever since.

It now appears as though Perez is going to be offered one last lifeline to return to F1 next year.

Cadillac will be the newest team on the grid in 2026, and after months of deliberation, they appear to have decided on their driver line-up.

Perez looks set to race for Cadillac next season, with Valtteri Bottas expected to be his teammate.

Team principal Graeme Lowdon now appears ready to make an offer to Perez that Horner was never willing to commit to.

READ MORE: Sergio Perez’s life outside F1 from net worth to nickname

Cadillac F1 preparing a three-year contract for Sergio Perez to join the team in 2026

A report from Motorsport has shared more details about negotiations between the 35-year-old and Cadillac ahead of next season.

They believe that there’s still ‘one issue’ that Perez was willing to spend months talking about, and that was the length of his contract.

It’s believed that Perez has agreed a contract that could run for three years, something that he never received at Red Bull.

When Perez initially joined Red Bull, it was on a one-year deal for 2021, and his contract was extended for a further season for 2022.

Perez did enough that season to earn a two-year deal running to 2024, and halfway through that season, he had put pen to paper on another two-season agreement that was then cut short.

Cadillac are showing their faith in Perez by giving him the option to potentially spend the team’s first three years on the grid as one of their drivers.

However, the expectations on Cadillac going into 2026 are so low that Perez may need all three years before he can start to deliver competitive results.

READ MORE: All to know about General Motors’ Cadillac F1 team from engine to drivers

Where do Cadillac expect to be during their first season as a Formula 1 team?

The report from Motorsport goes on to say that ‘the goal’ for Cadillac in their first season is to achieve times similar to other midfield outfits.

Perez has experienced this during his time with Force India, where he helped a relatively small team improve very quickly.

Cadillac will be using Ferrari power units before General Motors build their own engines, and some of their success will be based on how well the Maranello outfit perform behind the scenes this year.

It also means that Haas, the other team powered by Ferrari, will be Cadillac’s benchmark next season.

There’s a suggestion that Cadillac will unveil Perez before the Italian Grand Prix, meaning he can soon start working in their simulator and help guide the technical development of the car.

On top of this, it’s understood that Perez and Bottas will be on equal terms within the team, something the Mexican never had when he was teammates with Max Verstappen.