Costa accepted to will stay at Mercedes AMG for an additional five years.
The Italian began to work in Formula 1 in 1988 with Minardi.
He moved to Ferrari in 1996 and designed Michael Schumacher’s championship-winning cars. He was fired from the Scuderia in May 2011.
A few months later, he took the job of director of engineering at Mercedes and worked alongside another former Ferrari man, Ross Brawn.