Hamilton is in the final year of his current Mercedes deal but he was supposed to sign an extension at the beginning of the year.
The deal never materialised and Mercedes have since lost their dominance in the sport, leading to questions over the Brit’s future.
But according to German publication Auto Motor und Sport, there will be an announcement in France next weekend confirming the extension has been signed.
Hamilton is expected to pen a bumper two-year deal which would make him the highest-paid British sports star of all time.
Red Bull boss Christian Horner has recently claimed that the four-time World Champion had stalled over a deal because of financial differences.
“I can only imagine that a delay can only involve money and I should think it’s such a grotesque amount of money that Toto [Wolff, Mercedes team principal] is talking about… that’s probably what is making Toto and Niki’s [Lauda] eyes water at the moment,” Horner said.
“He’s got an expensive Travel, he’s a four-time world champion and I doubt he’s cheap.
“I can only envisage that that’s probably got something to do with the delay.”
France will host their first Grand Prix in a decade next weekend where Hamilton’s future will supposedly be sorted.
The 33-year-old will be looking to claw back the one-point deficit to Sebastian Vettel at the top of the Drivers’ Championship.
Source : EXPRESS