The Brit is in the final 12 months of his current Mercedes deal and is keen to extend his stay with the team.
However, contract talks have been ongoing since the end of last season which has led to some speculation that their might be a hitch in negotiations.
But the Daily Mail are now reporting that Hamilton is soon to sign the most lucrative contract in the history of British sport.
The four-time world champion is expected to put pen to paper on a two-year extension worth £20m per year.
Hamilton would write himself into the record books with the deal which would see him through until 2020.
The Daily Mail add that it is likely to be the final contract he signs with Mercedes as he could pursue one final transfer before he calls time on his career.
Hamilton has recently said that he is “super relaxed” over signing a new contract and will not do it just because people want him to.
”I’m really super relaxed, I don’t feel pressure from the team, I don’t feel pressure within myself,” Hamilton previously said.
“I want to continue racing so I’ll have to do a contract at some stage but I’m definitely not going to do it when people want me to do it.
“I’ll do it when it’s ready.
”We started talking about it over the winter and I was like I’ll come back to it and then we picked it up again and I was like I’ll come back to it.
“It’s not really my priority at the moment.”