Reportedly, the F1 paddock unanimously believes that Mercedes will have the best power unit on the grid in 2026. The sport is set to enter a new, highly engine-dependent era from 2026 onwards, with the German team looking to have the edge.All chatter relating to the 2026 power units suggested that Mercedes might have the biggest advantage heading into the new regulations. Engine prowess will play a major role in the new rules, after four years of the aerodynamic-centric ground effect regulations.When the sport last moved towards an engine formula in 2014, the Brackley-based team came out on top, dominating the field until 2021. Motorsport.com Spain has reported that it is now unanimously believed in the F1 paddock that they once again hold the advantage concerning the 2026 power unit.The Mercedes F1 team has been touted to be the quickest package come 2026, with George Russell seen as a genuine title contender for next year. However, McLaren and Williams are Mercedes' customer teams and will also have this power unit in the back of their cars next year.McLaren has already dominated the sport over the last 12 months, and the Papaya team cannot be ruled out of contention going into 2026. Williams has also been on an upward trajectory under James Vowles, who aims to start competing for race wins and championships in the near future.Hence, Ferrari and Honda might have to play catch-up next year. Audi will also manufacture engines for their own team in 2026, while Ford partners up with Red Bull Powertrains to develop the Austrian team's power units.Mercedes yet to lock down their driver lineup for 2026George Russell and Kimi Antonelli at the Dutch Grand Prix - Source: GettyWhile Mercedes reportedly has the quickest power unit for 2026, they have yet to lock down their driver lineup for the 2026 F1 season. Neither George Russell nor Kimi Antonelli has put pen to paper for their contract extensions.Toto Wolff has already claimed that he expected to go into the 2026 season with the same two drivers, after Max Verstappen announced that he would stay at Red Bull for at least another year. However, negotiations over new contracts for Russell and Antonelli have now entered September.Recently, F1-oversteer also reported that Mercedes is only offering Russell a 1+1-year contract, even amid his strong performances for the team in the 2025 season. This is because Wolff still has one eye on bringing Verstappen into the building in 2027. Antonelli is also expected to sign a similarly structured deal.Speaking to Sky Sports during the Italian GP, Wolff made it clear that he always prefers to offer only 1+1-year deals to his drivers. The Austrian also claimed that a driver did not have the right to "mindset" if they believe they can only perform well with a longer contract.