Mercedes has rejected British media reports that claim the German marque is set to quit Formula 1 as a works team at the end of 2020.

It is claimed that amid new Daimler CEO Ola Kallenius' push to save a billion euros over the next three years, Mercedes will only remain in F1 as an engine manufacturer.

The report said the bombshell news could be decided formally at a board meeting on February 12.

The Brackley based operation could be taken over by team boss Toto Wolff and new Racing Point owner Lawrence Stroll, who would rename it Aston Martin.

Stroll is said to be close to taking a $260 million stake in Aston Martin, the British luxury carmaker that currently sponsors Red Bull.

According to the latest reports, Racing Point would then be taken over by Dmitry Mazepin, a Russian billionaire whose son Nikita races in Formula 2, while Lewis Hamilton flees Mercedes and potentially joins Ferrari.

But when asked about whether the matter will be discussed at the next board meeting, Kallenius said at an event in Berlin: "Not true."

And, citing sources from within the title-winning Mercedes team, the German broadcaster RTL insisted the reports are "simply wrong".