Grapevine: Williams Deny Ralf's Contract Renewal

The Williams-BMW team on Monday denied reports that German Ralf Schumacher had agreed to take a pay-cut to secure a two-year extension to his current contract.

Schumacher was said by German daily Bild to have taken a $3 million (USD) wage-cut to his $15 million salary to secure his future with the team until the end of 2006.

"We have not done anything yet," a team spokesman said. "Of course, we are going through negotiations but to say there is ink on paper would be going too far."

Schumacher's current deal concludes at the end of next season when several top drivers including teammate Juan Pablo Montoya, McLaren's David Coulthard and Ferrari's Rubens Barrichello are also out of contract.

His manager Willi Weber is keen for Schumacher to remain with Williams, especially following reports that Colombian Montoya is keen for a change of scenery, and any pay cut is expected to include compensatory inflated Championship bonuses.

Schumacher looked set to go all the way to the wire in a Championship battle with Ferrari-driving brother Michael this season but has lost ground after two disappointing races.

He strung together a run of 10 consecutive finishes which culminated with two victories - in the European and French Grands Prix, but failed to score points in the British and German races and is now 18 points off the lead.