New Zealand's Liam Lawson is one step closer to a drive in Formula One. 

The Formula Two driver has been announced as Red Bull's new Formula 1 reserve driver following the termination of Juri Vips' contract after he used a racial slur. 

"Liam Lawson steps into that role following the Juri Vips announcement," Red Bull team boss Christian Horner announced overnight at Silverstone. 

Lawson currently sits 10th in his second season in F2 but has struggled of late. 

Overnight he finished last in the sprint race in England. Racing for Carlin he was firmly inside the top eight but front wing damage midway through the race forced him into the pits for a change, dropping him to the back of the field. 

Liam Lawson won the F2 sprint race in Jeddah, Saudi Arabia, late last month. Photo / Getty Images 

Red Bull terminated the Vips last week for using a racial slur during an online gaming stream. 

The 21-year-old Estonian was suspended by Red Bull last month pending an investigation into the language he used. Vips had apologised for his actions. 

"Following its investigation into an online incident involving Juri Vips, Oracle Red Bull Racing has terminated Juri's contract as its test and reserve driver," Red Bull tweeted. "The team does not condone any form of racism." 

Vips stepped in for Red Bull's F1 driver Sergio Pérez in the first practice session for the Spanish Grand Prix last month and finished last. 

Vips has three podium finishes this season for the Hitech Grand Prix team in the F2 championship. 

The case has similarities to that of Kyle Larson, the 2021 NASCAR Cup Series champion who was suspended in 2020 for using a racial slur while playing a video game. He was dropped by his sponsors and fired by Chip Ganassi Racing, but spent time immersed in diversity programs before returning.