According to F1 Insider, Mercedes are looking to block Ferrari from signing Newey, with reports suggesting they are willing to offer shares in the team worth around £1.1 billion.
Despite this staggering figure, Mercedes boss Toto Wolff has been doubtful that Newey would be able to solve their current issues.
“He's [Newey] obviously an incredible engineer," Wolff said recently to Sky Sports Germany.
"Even the greatest magician would have difficulties in solving our problems.”