London, Nov. 17 : After becoming the official owner of the Brawn GP, Mercedes has ruled out increasing its offer for reigning F1 champion Jenson Button to remain at Brackley.

Following that, Button reportedly reached an 18 million-pound three-year deal to join his predecessor as world champion, Lewis Hamilton, at McLaren.

On Monday, the German manufacturer ended months of speculation by announcing that it would begin the 2010 world championship with its own Silver Arrows team, which will be re-branded as ‘Mercedes Grand Prix’.

It will be the first time it has had a full-on factory team in motorsport’s blue-riband series since the 1950s.

However, it looks increasingly as if Button will be frozen out by the new owners, who appear to want to build a team around German Nico Rosberg, who is joining from Williams.

Mercedes also admitted it had been in talks with Nick Heidfeld, who is without a team since BMW’s departure.

“We’ve had discussions with Jenson over what we think is a sensible salary and this deal is not going to change anything in that respect,” said chief executive Nick Fry.

“I hope Jenson will be with us, as we’ve been together for a good few years, but F1 is not divorced from the rest of the world. The reason we’ve survived as a team is that we have operated within our means,” he added.

Mercedes’s takeover of Brawn has been the richest deal in motor sport history at a reported 110 million pounds. (ANI)