On December 19, 2005, Fernando Alonso announced that he would be moving to McLaren for 2007. His contract with Renault was set to expire on December 31, 2006. However, on December 15, 2006, Alonso was allowed by Flavio Briatore and the Renault F1 Team to test for one day for McLaren in the Jerez circuit, as a result of his successes with Renault. Driving an unbranded MP4-21 and wearing a plain white helmet and overalls, Alonso completed 95 laps. Lewis Hamilton was chosen as his partner for the season. McLaren were reported to be paying Alonso £ 20 million (approx $ 39 million c. 2007) in 2007. Alonso debuted with the new McLaren car on January 15, 2007, in the streets of Valencia.
On 8 April 2007 in his second race for the team, Alonso secured his first win for McLaren, and the team's first since 2005, by leading the majority of the Malaysian Grand Prix. A difficult drive at Bahrain's Sakhir circuit on 15 April, saw him finishing 5th behind his rookie team mate who took a podium finish. In the fourth race of the year in Spain, his home grand prix, he qualified second. He had a first lap collision with Felipe Massa which caused some damage to his car and dropped him to fourth. He finished the race third. On May 27, Alonso secured his second victory for McLaren at Monaco, scoring pole position, fastest lap and the race win and in the process lapping the entire field up to 3rd position. At the Nürburgring he took his third win of the year in a dramatic race affected by intermittent rain showers, overtaking Ferrari's Felipe Massa for the lead with just four laps remaining. After the controversy at the 2007 Hungarian Grand Prix, however, relations between Alonso and his team declined. It was reported in the media that he was no longer on speaking terms with Hamilton, and it was speculated that he may leave McLaren at the end of the season. On 7 August 2007 The Times reported that McLaren would let Alonso leave the team at the end of the season if he wished, two years earlier than his contract allowed. In spite of this, Alonso still managed to finish a creditable third in the driver's championship, level on points with team-mate Hamilton and just one point behind World Champion Kimi Räikkönen (the closest 1-2-3 in WDC history).
As part of the espionage controversy between McLaren and Ferrari, the former were found guilty of breaching the Article 151c of the FIA's sporting regulations but went unpunished due to a lack of evidence. However, following the acquisition of new evidence by the FIA, a new hearing was held on September 13. The new evidence consisted largely of email traffic between Alonso and test driver Pedro de la Rosa. The FIA's World Motor Sport Council report following the hearing stated that Alonso and de la Rosa had obtained and used confidential Ferrari technical data and sporting strategy information from senior McLaren engineer Mike Coughlan via Ferrari employee Nigel Stepney, including during test sessions. Both drivers were spared sanctions in exchange for providing evidence.
On 2 November 2007, after a turbulent year with McLaren, it was announced that McLaren and Alonso had mutually agreed to terminate his contract and that he would be free to join any team for 2008 without paying McLaren any compensation.
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