Sergio Pérez and Red Bull have agreed to part ways, ending the Mexican driver’s time with the Formula 1 team.

RB driver Liam Lawson is expected to be announced as Pérez’s replacement in the coming days.

Pérez, whose poor form cost Red Bull the constructors’ championship this year, had been negotiating the next steps in his contract since the start of the Abu Dhabi Grand Prix weekend.

While the offer of an ambassadorial role was on the table, Pérez has decided to withdraw from his Red Bull contract entirely.

“I am incredibly grateful for the last four years at Oracle Red Bull Racing and for the opportunity to race with such a great team,” said Pérez.

“Driving for Red Bull was an unforgettable experience and I will always cherish the successes we achieved together. We have broken records, achieved remarkable milestones and I have had the privilege of meeting so many incredible people along the way.”

“It was also an honor for me to drive alongside Max (Verstappen) as a teammate all these years and to share in our success.”

Pérez had signed a two-year contract extension in June this year, but his spiraling form prompted Red Bull to look for other options.

This will allow him to pursue racing opportunities elsewhere in 2025, even though there are no seats available in Formula 1.

His next steps are unclear.

Formula 1 has reached an agreement in principle with General Motors to add a Cadillac team to the grid in 2026.

Given Pérez’s popularity in the North American market, he could well be a leading candidate for an opportunity there.

“I would like to thank Checo (Perez) for everything he has done for Oracle Red Bull Racing over the last four seasons,” added team boss Christian Horner. “Since joining in 2021, he has proven to be an exceptional team player, helping us to two constructors’ titles and our first one-two in the drivers’ championship.”

“His five victories, all on street circuits, were also a spectacular sign of his determination to always push himself to the limit.”

“Although Checo will not be driving for the team next season, he will always remain a hugely popular team member and a valued part of our history. Thank you, Checo.”