Sebastian Vettel signs three-year extension with Ferrari

World Championship leader Sebastian Vettel has signed a three-year contract extension with Ferrari, ending months of speculation about his future.

It was widely rumoured that Vettel was flirting with the possibility of joining Mercedes, a prospect dismissed on Friday by his title rival Lewis Hamilton.

However, the new deal means that the 30-year-0ld will race for the Italian squad until the end of the 2020 season.

Earlier this week, Kimi Raikkonen also extended his stay at Ferrari till 2018.

"Scuderia Ferrari has extended its technical and racing agreement with driver Sebastian Vettel for the 2018, 2019 and 2020 racing seasons of the Formula One World Championship," said Ferrari in a statement.

The German's contract had been due to expire at the end of the season, reports formula1.com

The four-time world champion, who leads this year's drivers' championship by 14 points from Hamilton - will now look to build on a relationship that has so far yielded seven wins and 28 podiums since the start of 2015.

The deal also means that Ferrari will field an unchanged driver line-up for a fourth consecutive season next year.