Daniel Ricciardo could be handed a Red Bull lifeline as struggling Spaniard Sergio Perez faces the axe

A fairytale return to Red Bull could be back on the cards for embattled Aussie driver Daniel Ricciardo with Sergio Perez reportedly set to be axed.

Perez is reportedly at risk of losing his seat at the top F1 team if he doesn't improve his performances. 

The 34-year-old, who recently signed a two-year extension to stay with Red Bull until 2026, has dropped to fifth in the F1 drivers' standings after failing to reach the podium in six consecutive races. 

In the last five races, Perez has earned 15 points compared to teammate Max Verstappen's 101.

'Obviously Sergio has had a tough spell,' Red Bull team principal Christian Horner told Sky Sports on Friday. 

'His first five races were very competitive. The last five have been nowhere, and we want to see the Sergio from the first five back. 

'He knows that, he's aware of that, he's been working hard in the sim this week, working hard to understand where it's just not playing out for him.

'But what we've constantly seen with him is this resilience to be able to bounce back. We're hoping to see that very soon.'

Amid growing concerns over Perez's performances, Auto Motor und Sport reported that the Mexican driver could lose his seat if he doesn't show improvement, with Ricciardo the leading candidate to replace him.

When asked by the German publication whether Perez was at risk of being replaced, Red Bull Racing Chief Adviser Helmut Marko responded: 'We will know more during the summer holidays.'

According to Planet F1, both Perez and Ricciardo have performance clauses in their contracts that allow for a seat switch if needed.

When asked whether Red Bull had offered Perez a contract extension too early, Horner replied: 'That's a brutally hard question.'

'It made absolute sense to sign Checo at that point in time, but this is a business in which there are pressures to deliver.

'We thought the contract would help. I think it's something that Checo is working very hard on, and he knows this is a sport where there's no hiding. 

'Particularly with Max Verstappen as your teammate. 

'He knows he's being measured against the very best, and we need him up there supporting Max, because there's two McLarens now, there's two Ferraris, there's two Mercedes and we need there to be desperately two Red Bulls.'

Meanwhile, Ricciardo has been linked to a potential move to Williams amid ongoing speculation about his future. 

Williams has struggled with on-track performance for nearly a decade and hasn't won a race since the 2012 Spanish Grand Prix. 

However, the team has made progress since being sold to Dorilton Capital in 2020.

Williams re-signed Alex Albon on a multi-year deal lasting until at least the end of 2026, but his teammate Logan Sargeant is expected to be out of a drive at the end of the year. 

Williams team principal James Vowles has expressed interest in signing Carlos Sainz, who will lose his seat at Ferrari to Lewis Hamilton next season, but is frustrated by Sainz's reluctance to sign a contract.

Speaking to F1TV, respected F1 journalist Will Buxton said this situation has opened a door for Ricciardo: 'His entire future [is] on the line right now.'

Ricciardo, who previously raced for Red Bull from 2014 to 2018, has had a mixed start to his 2024 campaign, sitting 13th in the standings with 11 points. 

However, he has shown signs of improvement recently, securing points finishes in Canada and Austria.

Perez, who finished in FP2 at Silverstone on Friday, will have another chance to prove his worth at this weekend's British Grand Prix, with lights out scheduled for midnight on Sunday AEST.