New Zealander Liam Lawson will take on the reserve driver role at Red Bull after the Formula One championship leader dropped Estonian Juri Vips for a racial slur.

Red Bull terminated Vips's contract last Tuesday after an investigation into a remark made during a video game live stream session that also featured Lawson as one of the competitors.

“Liam Lawson steps into that role following the Juri Vips announcement,” Red Bull team boss Christian Horner told reporters at the British Grand Prix.

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Lawson, 20, is in his second season in Formula Two with Carlin.

India's Jehan Daruvala, who tested privately with McLaren last week, and (Norwegian) Dennis Hauger are also Red Bull juniors competing in Formula Two and qualified for super-licences. Horner said both were doing well and their progress was being “followed with interest.”

Red Bull is unlikely to have any F1 race seats available next season and the reserve role is mainly to provide backup to the established drivers and cover should one of them be unable to race.