A report on Euro News, a satellite news channel, claims that Damon Hill has signed a contract with Prost Grand Prix to race with them in 1998.

Hill is said to have been offered a salary of around 5 million pounds, a large part of which has been put up by team technical partners.

Updates to follow on official confirmation.

Jean Alesi has signed a two-year deal with the Sauber team. He will team-up with Johnny Herbert. It was first thought that Alesi could stay with Benetton if Fisichella stayed with Jordan, but Alesi didn't want to wait for that decision.

Alesi said: "I am very much looking forward to working with Peter Sauber and his team. I was very surprised by them this season and I think they have the potential to be a top team in the near future. I hope my experience from driving for Ferrari and Benetton will be good to them."

Fisichella will go to Benetton because the Benetton team has won the high court case against Jordan to get the young Italian on their team. Jordan didn't want to let Fisichella go but Fisichella already had a contract with Benetton.

The Jordan team has three days to appeal.