Allison returned to front-line duty last year as part of a job swap with Mike Elliott, who wanted to step away from the technical director position and originally moved into the chief technology officer position before leaving the squad at the end the season.
While at the time it was unclear how long Allison would want to stay in the role, having originally joined Mercedes in 2017, his rekindled enthusiasm for F1 has now resulted in him signing up for the long haul.
Speaking about his new deal, Allison said: “F1 has brought me a lot of good fortune, but none greater than answering Toto’s call to join Mercedes in 2017.
“It is a great privilege to continue this adventure, working alongside brilliant colleagues and fighting together for championship success.”
The news of Allison’s fresh contract comes off the back of Mercedes team principal Toto Wolff revealing earlier this week that he had recently extended his contract with the team at least until the end of 2026.
Wolff has no doubts about the value Mercedes gets from having Allison on board, as he praised both his technical capabilities and his approach to the job.
“I am thrilled that James has committed his long-term future to the team,” said Wolff. “Put simply, he is the most impressive technical leader in our sport.
“His gladiator spirit, along with his knowledge, experience, and determination, make him second-to-none. His influence and impact, however, go so much further than that.
“Since joining in 2017, he has been a key ally and sparring partner for me personally. We can challenge each other openly and honestly; an embodiment of the ‘tough love’ culture of the team that is vital in helping us all perform at our very best.
“Most importantly though, James is a true friend you can rely on, not only in times of success but in difficult moments too. It has been a pleasure to work with him over the past seven years and I look forward to doing so for many more to come.”
Allison reckoned that the confirmation of both his and Wolff’s future would be something that injected a great deal of stability for Mercedes' staff and its partners.
“I think it is definitely helpful for a team to know that it has stability,” he said, when asked by Autosport if there was a wider significance to the recent news.
“It is certainly a big deal for us to know that we have that stability with Toto, and I hope in a smaller way that the folk here will be reassured to know that that's the case.
“Then, less close to home, it helps with our partners as well to know that that is the case and it means that everyone looking at us from the outside can see that there is stability and commitment to hoping that the team will be able to work solidly and enjoy good success in the future.”
Mercedes is coming off the back of two challenging seasons in F1’s new ground effect era, where it has failed to fully get on top of the regulations.
However, it is more confident that a concept revamp for the 2024 season will help it close the gap to the dominant Red Bull squad.
