Sergio Pérez is holding talks with Red Bull in the coming days to work out the "right way forward," with his Formula 1 exit likely to be confirmed.
Sources have told ESPN that Red Bull are set to move on from Pérez after the discussions, which both team principal Christian Horner and -- for the first time publicly -- the Mexican driver admitted are taking place in the aftermath of the season-ending Abu Dhabi Grand Prix.
Pérez retired after just two laps at Yas Marina, the final disappointment of a season that saw him outscored by championship-winning teammate Max Verstappen by 285 points.
"We'll sit down with him and reflect on the on the season and obviously, where it's gone wrong, and collectively work out what is the right, the right and the appropriate way forward," Horner said.
"Obviously the benchmark is always your teammate. And the car has won nine races with Max at the wheel. [But] it's been far from the easiest car, and Max is the hardest teammate in the world to have."
Sources have told ESPN that Horner met with Pérez's agent Julian Jakobi multiple times in the Yas Marina paddock last week to discuss an amicable split.
Pérez signed a two-year contract extension in June but scored just 49 points in the season's last 18 races. He has now openly acknowledged that he may not remain with the team.
"We're going to be talking in the coming days and we will discuss what's the situation from both parties if we are able to reach an agreement," Pérez stated. "If not I have a contact for next year."
When asked if he intends to voluntarily walk away, the 34-year-old simply said: "No."
While talks are taking place in the aftermath of the finale, the timeline of a decision is less clear.
Sources have indicated Red Bull is willing to move Pérez away from its race team and into a wider ambassadorial role with the team without a significant change to his current salary, believed to be in the region of $8 million a year.
That would be a significant concession to make for a role that would essentially include a handful of show runs around the world and marketing appearances for the company.
Sources have indicated to ESPN that Liam Lawson, who returned to RB as Daniel Ricciardo's replacement at the U.S. Grand Prix, has been lined up to replace Pérez at the senior team, but making sense of Red Bull's thinking around drivers has been complicated all season long.
Red Bull had hoped young driver Isack Hadjar would have made the optics of the decision a little easier by winning the Formula 2 championship on Sunday, but he lost out to Sauber-bound Brazilian driver Gabriel Bortoleto.
Hadjar, who will test for RB at the post-season test in Yas Marina next week, would then be moved into Lawson's spot.
A promotion for Lawson would leave Yuki Tsunoda at RB for a fifth consecutive season, a decision which would raise questions about his long-term future with the company's racing arm beyond 2025.
In the aftermath of McLaren winning the constructors' championship -- ending Red Bull's two-year run -- with Lando Norris and Oscar Piastri impressing, Horner admitted Red Bull require two strong drivers moving forward.
"I think you can see the importance of having two drivers scoring on a regular basis in the constructors championship is crucial." he said.
"Ferrari will be strong with their lineup next year. McLaren have a strong lineup. Mercedes will have an inexperienced driver in one of their seats. And so, you know, for our team, it's very important that both of our drivers are delivering, and there's not a significant gap."
Additional reporting by Nate Saunders.