Sergio Perez has secured his F1 future with a new two-year extension after a huge show of faith in the Mexican by Red Bull.

Ahead of this weekend’s Canadian Grand Prix, Red Bull announced they have elected to re-sign the 34-year-old alongside Max Verstappen in a move which locks down their driver line-up for the next two seasons.

But what are the consequences of the decision for Red Bull, and the rest of the F1 grid?

Red Bull’s faith in Sergio Perez

This new deal is the ultimate show of faith in Perez from Red Bull.

In the team’s press release, Red Bull boss Christian Horner cited the importance of “continuity and stability” heading into F1’s 2026 regulation shake-up and that is exactly what the team now have by offering Perez a two-year contract.

It may well end up being Perez’s last F1 deal but it gives him much-desired stability and massively reduces the pressure on him.

With Perez no longer needing to look nervously over his shoulders at who might replace him and the outside noise quelled, Red Bull will hope he will have the freedom and confidence to get the best out of himself.

Sergio Perez (MEX) Red Bull Racing RB20 runs wide. Formula 1 World Championship, Rd 7, Emilia Romagna Grand Prix, Imola,

Sergio Perez (MEX) Red Bull Racing RB20 runs wide. Formula 1 World…

A recent and notable dip in form led to some questions as to whether Perez was about to enter another downward spiral and if he remains the right choice for Red Bull. But the Perez-Verstappen combination is one that has ultimately secured five of the last six world championships on offer, and is on course to add another two to that tally this year.

Despite coming under increasing pressure from their F1 rivals of late, Red Bull see no reason to make a change.

Another door shuts for Carlos Sainz

Red Bull’s decision to offer Perez a new deal means another door has slammed shut for Carlos Sainz, who is on the hunt for a drive after losing his Ferrari seat to Lewis Hamilton.

Sainz, a former Red Bull junior, had been linked with Red Bull as a possible replacement for Perez, with Horner even going as far as to admit that he was in contention.

However, a Red Bull seat continues to elude the Spaniard, who will now have to consider his options and make a big decision about his own future.

Sainz was believed to be waiting on Red Bull to make a call about their driver line-up for 2025 before committing to another project, having been heavily linked to the likes of Sauber/Audi and Williams.

One of those two teams now looks like the most likely landing spot for Sainz, with Mercedes seemingly favouring the idea of promoting their highly-rated teenage prodigy Andrea Kimi Antonelli from Formula 2.

Carlos Sainz Jr (ESP) Ferrari in the post race FIA Press Conference. Formula 1 World Championship, Rd 8, Monaco Grand

Carlos Sainz Jr (ESP) Ferrari in the post race FIA Press Conference…

Blows for Daniel Ricciardo and Yuki Tsunoda

As well as Sainz, Daniel Ricciardo and Yuki Tsunoda have also been overlooked.

The pair drive for Red Bull’s sister team RB and have both been mooted as options to replace Perez at some point or another.

Indeed, Ricciardo had been touted as Red Bull’s first choice open to take Perez’s seat if the latter did not perform this year, but the Australian’s own displays in 2024 have damaged any dreams he may have harboured of making a fairytale return to the senior team.

It will be a bitter pill for teammate Tsunoda to swallow. The 24-year-old Japanese racer has been in fantastic form this season and has finally found the consistency and maturity he was lacking at the start of his F1 career.

Tsunoda has held the upper hand over Ricciardo so far this year and can feel somewhat hard done by to not even find himself considered for a Red Bull F1 seat in 2025.

With no route to the senior team – on paper, at least – until 2027 at the earliest, might Tsunoda now consider alternative options away from the Red Bull family?

Yuki Tsunoda (JPN) RB VCARB 01. Formula 1 World Championship, Rd 7, Emilia Romagna Grand Prix, Imola, Italy, Qualifying

Yuki Tsunoda (JPN) RB VCARB 01. Formula 1 World Championship, Rd 7, Emilia…

Have Red Bull boosted bid to keep Max Verstappen?

Perez’s contract extension could be seen as an attempt to keep Verstappen – and his influential camp – happy.

Despite being contracted to Red Bull until 2028 and repeatedly insisting that he has no desire or intention to leave, speculation has continued to swirl about Verstappen’s future amid public courting from Mercedes.

Verstappen gets on with Perez well and knows he has the beating of him. With the right car underneath him, Verstappen is a sure-fire bet to win the championship both this year and in 2025. As time has gone on, Perez seems to have accepted his place as Verstappen’s rear-gunner.

So why would Red Bull risk potentially destabilising that harmony by bringing in an unknown quantity alongside Verstappen? A highly-motivated Sainz would arrive with a point to prove, as would young, ambitious prospects such as Lando Norris or Oscar Piastri.

Red Bull know exactly what they have with Verstappen and Perez so a driver change now would represent too much of an unnecessary risk that they simply don’t need to take. 

1st place Max Verstappen (NLD) Red Bull Racing. Formula 1 World Championship, Rd 7, Emilia Romagna Grand Prix, Imola,

1st place Max Verstappen (NLD) Red Bull Racing. Formula 1 World…