Eddie Jordan last night rejected German newspaper stories that Ralf Schumacher has signed a four-year deal with Williams, despite confirmation from the driver's spokesman that talks have already been entered into.

"I went to the test (in Monza) to discuss some issues with Ralf and where he goes is not decided yet. I can categorically say that," Jordan said last night.

However, according to reports in a regional German newspaper, Express, Schumacher signed a four-year deal with Williams at last weekend's Hungarian Grand Prix as part of a request to Williams from BMW that the team have a German driver. BMW are to supply engines to the team from 2000 and Schumacher is tipped as a replacement for fellow German Heinz-Harald Frentzen, whose contract is not to be renewed.

Yesterday, Ralf Schumacher's spokesman Willi Weber confirmed that the driver talking to Williams but said that "nothing will happen until the end of August".

Jordan, meanwhile, said that Schumacher's future will be known by the time of the Italian Grand Prix in three weeks' time. "The boss of Honda is coming to the race and some things will be decided then which will clarify Ralf's position," he said. Equally pressing is the state of Jordan's engineering department. The team is eager to secure a works engine deal from supplier Honda and the design of next year's car is crucial.

Thus, the future of Technical Director Gary Anderson is looking increasingly precarious. Jordan recently brought in designer Mike Gascoyne, who has been given the task of drawing up next year's car and sources say Anderson is being increasingly marginalised.