It was confirmed this week that Mercedes driver Nico Rosberg had signed a new contract with the reigning Champion Constructor, ensuring he will still be fighting for the title next year and giving the German a boost going into his home Grand Prix at Hockenheim this weekend.

Mercedes boss Toto Wolff was always confident Rosberg would sign a new deal, but there have been times where the growing animosity between Nico and his teammate Lewis Hamilton has led to Wolff questioning whether keeping the pair together was best for business. So was Rosberg's decision to continue his battle against Hamilton the correct one?

Since Hamilton's controversial decision to jump-ship from McLaren in 2013, he has gone on to win two consecutive World Championships and he, alongside Rosberg, has helped Mercedes end the dominant spell Red Bull were enjoying with Sebastian Vettel. The Mercedes drivers had been friends ever since their junior karting days, but competitive tension between the two soon started to build as they challenged for victories and titles. We have seen plenty of public flash-points over the past few seasons, both on and off the track.

Hamilton has been in this position before. When he burst onto the scene at McLaren, he ruffled the feathers of teammate Fernando Alonso on several occasions and soon dethroned the Spaniard as the team's number one driver. Instead of battling to stay top-dog at McLaren, Alonso decided to admit defeat and returned to Renault after just one season. The Spaniard hasn't challenged for a title since and has recently returned to McLaren after an unsuccessful spell with Ferrari.

It must have gone through Rosberg's mind that leaving Mercedes may have been the best option. I'm sure he would have had plenty of offers if he had decided to move on, there was reported interest from Ferrari and a return to an improving Williams team also looked like a viable option.

But instead, Rosberg has chosen to stay and continue his fight with Hamilton. A decision all Formula 1 fans will be very happy about. There is no doubting Mercedes have the fastest car and Nico wouldn't immediately be able to challenge for the title with any other constructor. His rivalry with Hamilton adds an extra bit of spice to the sport, which due to Mercedes' dominance, could have gone a little stale.

It's the decision we all expected and one we all wanted to see. I'm sure Formula 1 fans will be treated to more epic battles between Rosberg and Hamilton for the foreseeable future, as the German continues to search for his first Drivers' Championship title.