London, Oct 2 (IANS): Struggling Formula One (F1) team Manor have got a huge boost as they will have Mercedes engines for the next season.

The team have been at the back end of the grid since their debut in 2010 when they began competing as Virgin Racing.

But the new deal, for the best engine in Formula One, is likely to signal a major upturn in form, BBC reported on Thursday.

"Ultimately, the strength of the Mercedes-Benz package speaks for itself," said Manor team principal John Booth.

Manor have also agreed to a technical partnership with Williams, who will supply them with suspension and transmission.

Booth said this season had been a "rebuilding year in every aspect of our operation" and that the team had "put in place a strong foundation from which to progress".

Mercedes F1 boss Toto Wolff said:"Manor is a tenacious team with a fantastic competitive spirit, and we are all excited to see what step forward they can make next year with their new car coupled with the Mercedes-Benz Hybrid Power Unit."

Earlier speaking at the Japanese Grand Prix, Wolff had said,"We like Manor a lot. Because there is a competitive edge to the whole story, that if Manor gets the right chassis and the right engine, it would be a pretty interesting narrative to see how the team develops."

Wolff added Manor needs to raise their budgets to survive at the top-level of car racing.

"The harsh financial reality is that Manor needs to refinance themselves and raise the budgets," Wolff said.