Alex Zanardi confirmed this weekend that he has signed a letter of intent with Frank Williams to drive for Williams' Formula One team next year, but Williams and Zanardi still appear to be some distance from a final agreement.

The 31-year old Italian, who appears to be heading for his second straight CART title, would say no more on the subject, however but well-placed sources say that Williams has not agreed to Zanardi's salary demands.

Questions also persist about which engine Williams will race next year. It is believed Williams have been offered this year's Mecachrome engine for next season while the BAR team will be supplied with a new, improved 1999 V10 from Mecachrome. Williams is said to be unhappy with the situation and is talking to various other engine suppliers, including Mugen-Honda, Peugeot and Bryan Hart, and this factor could play a role in the negotiations between Williams and Zanardi.