Formula One world championship leader Nico Rosberg has extended his contract with Mercedes to at least 2017, a newspaper reported on Wednesday.

The 29-year-old German driver has penned a new deal worth 55 million euros ($A82.5 million) to stay with the team for the next three seasons, Bild reported.

According to the paper, the contract was signed on Monday. A Mercedes spokesman said confirmation of the deal was likely to be given shortly.

Ahead of Sunday’s German Grand Prix, Rosberg leads the Formula One world championship standings by four points from British teammate Lewis Hamilton.