Stuttgart- World champion Lewis Hamilton could start near the back of the grid at this Sunday's season-opening Australian Formula One Grand Prix, Mercedes motorsport director Norbert Haug has admitted.

"We have to reckon with starting in the last third on the grid but we will guarantee ourselves that we'll improve race by race and slowly return to the front," Haug said in an interview with German Press Agency dpa.

The statements came after poor testing results of the McLaren- Mercedes team, but Haug said he was upbeat that his team will improve as the season progresses.

"I'm sure we can catch up but we have accepted that we will have a very tough first third of the season," Haug said.

According to Haug, the Brawn GP team, formerly Honda, seems to be ahead of the curve at the moment but that the number of competitive teams will increase as the season progresses.

"After testing, Brawn GP seem strong. That's what everyone says anyway," explained Haug. "But I think there are lot of teams who will end up battling at the front, it's just that at the beginning we won't be among them."

Haug also confirmed that Hamilton and team-mate Heikki Kovalainen would start with the KERS energy recovery system at Albert Park on the weekend.

"We are definitely planning to start with KERS in both cars," he said. (dpa)