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World champion Norris will start from pole position on a Sunday for the first time since last November in Las Vegas after usurping Hamilton from the top of the timesheet with his final lap of Q3.
Hamilton had been due to be the Ferrari driver starting alongside him on the front row but was handed a three-place penalty for impeding Oscar Piastri.
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Third-fastest Charles Leclerc was therefore promoted to second place in the other Ferrari, with McLaren's Piastri and Red Bull's Max Verstappen moving onto the second row following Kimi Antonelli's own three-place penalty for speeding under yellow flags.
Hungarian GP grid: Revised top 10
1) Lando Norris, McLaren
2) Charles Leclerc, Ferrari
3) Oscar Piastri, McLaren
4) Max Verstappen, Red Bull
5) Lewis Hamilton, Ferrari
6) George Russell, Mercedes
7) Kimi Antonelli, Mercedes
8) Isack Hadjar, Red Bull
9) Arvid Lindblad, Racing Bulls
10) Nico Hulkenberg, Audi
McLaren have finished first and second in each of the last two years in Hungary but had appeared outsiders to contend for a hat-trick of wins this time.
However, their biggest upgrade to the MCL40 for several races has coincided with strong form around the challenging Hungaroring layout, with Norris particularly thriving.
Assessing the key requirements for Sunday's 70-lap race as he goes for the first win of his title defence, Norris told Sky Sports F1: "You still need good pace, good tyre management, a good start of course otherwise you learn on the go!
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"You have to prepare well and we have very tough competition. The Mercedes and Ferrari's race pace looked very good and they have been strong all year.
"We are in new man's land. It's our first time at the front, so we'll see what we can learn as we go and how we can adapt. I expect a very tough race, but it's not impossible."
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Reigning two-time constructors' champions McLaren's last race win came courtesy of Norris in Brazil eight months ago, with the Woking team scoring just four podium finishes across the first 10 races of F1's new rules era so far.
Norris, who was among the quickest drivers on track last week at Spa-Francorchamps but took a 10-place grid penalty due to exceeding power-unit elements, is however staying cautious.
"Let's just wait and see. I mean, it's just qualifying. It's a long race ahead, and it's going to be a difficult one, so we'll see," he stressed.
"Certainly, if we just go back to Spa last weekend, like I said then, I thought I had good enough pace to certainly not be on pole, but certainly fight for a podium and potentially a win, just in terms of pace. I obviously didn't, but the potential was there.
"It's nice to see that's kind of carried over to this weekend.
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"We brought some good upgrades, like I said, and that potential has turned into a result, which is always a very nice thing to see for the whole team and very good for the motivation and the atmosphere within the team. It's rewarding to see work going in and rewards being taken out.
"So, very pleased for all of them. But you can't just rely on one good qualifying, so I need a good race [on Sunday]."
What can Hamilton and Antonelli do after penalties?
For the third weekend running, Hamilton has been handed a penalty by the stewards and the prospect of fighting for the win now appears to be a major challenge.
The Hungaroring is difficult to overtake at due to the lack of straights but high tyre degradation is expected which will enable different strategies to be used, so Hamilton should still have a good chance of at least getting onto the podium if Ferrari's short run pace translates into strong long run speed.
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In a lengthy post on Instagram on Saturday evening after his latest penalty was confirmed, Hamilton wrote: "Sometimes you just can't catch a break. Another weekend when I've been feeling great throughout all the sessions, but then it just falls apart. To go from being so close to pole to then starting P5 is extremely frustrating.
"I always do my best to keep positive - sport is always about the highs and lows, but it's also in the margins.
"Every point counts and you have to seize every opportunity. After three penalties in three weekends, it's becoming difficult to hang on to that positivity. Still, I won't let the setbacks take away from the progress we've been making as a team. With the pace we have, I'm hopeful we can get something out of the race tomorrow.
"The car has been feeling better and better, and we've been competitive all weekend.
"Tonight, we'll keep working hard together to give ourselves the best possible chance [on Sunday]. I always enjoy this track, so keep the faith and send good vibes for the race."
As for Antonelli, he now has the surprise of starting one place behind team-mate George Russell with the Mercedes pair in sixth and seventh.
Antonelli leads Hamilton by 45 points and Russell, who starts sixth, by 50 points in the Drivers' Championship but all three face the jeopardy of being in the pack on the long run down to Turn One.
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The Mercedes team-mates have not had an on-track battle since Canada when they nearly collided multiple times, so there will be plenty of attention on how hard they fight each other after the lights go out in the last race before the summer break.
"The race is not going to be easy. Overtaking is going to be difficult, and we are now starting much further back that we could have been," said Antonelli.
"Our long run pace on Friday was good too so we will be doing everything we can to fight for the win."
Sky Sports F1's Hungarian GP schedule
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Sunday July 26
7.35am: F3 Feature Race
9.05am: Porsche Supercup
10.20am: F2 Feature Race
12.30pm: Hungarian GP build-up: Grand Prix Sunday*
2pm: THE HUNGARIAN GRAND PRIX*
4pm: Hungarian GP reaction: Chequered Flag*
5pm: Ted's Notebook*
*Also on Sky Sports Main Event
Formula 1 is in Budapest for the Hungarian Grand Prix with Sunday's race at 2pm and build-up from 12.30pm, live on Sky Sports F1 and Sky Sports Main Event. Stream Sky Sports with NOW - no contract, cancel anytime %!s(
