Toto Wolff insists Mercedes are "open" to the relaxing the rules on engine development as they acknowledge that their rivals are in a "difficult position."
Following a lacklustre Canadian Grand Prix, Red Bull team boss Christian Horner warned that Renault could leave F1 if in-season development is not allowed.
"The situation is we are at a precarious point in terms of Renault’s commitment to the future," he said.
"If you are effectively shutting that down (the engine development) in February, you are almost waving goodbye to them."
However, under the current rules, teams need to submit the designs for their 2016 engines by February 28. In order to change that rule, it would need unanimous support from all the teams.
Wolff says Mercedes are open to having the discussion.
"We are open minded about the situation," Wolff told Autosport.
"We understand Renault and Honda are in a difficult position. Discussions need to be held."
The Mercedes motorsport boss, though, has warned that it would increase costs.
"Cost reduction is a hot topic at the moment, and in-season development probably represents a double-digit million [euro] additional cost factor," he said.