Paddon will have to battle teammate Thierry Neuville, who bounced back strongly to finish runner-up to Ogier this season after a disappointing couple of seasons with Hyundai.
Ogier is yet to announce where he will drive but he has tested the M-Sport Ford and the new Toyota Yaris and will be a strong favourite to succeed wherever he ends up.
The Frenchman will earn a bigger salary with Toyota, who make their long-awaited return to WRC next year but should have a more competitive car if he were to sign with M-Sport Ford. The 32-year-old previously drove for Citroen but his relationship ended on a sour note and they have denied him the chance to test drive their new car unless he signs on as a driver next year.
"He is certainly in a strong position - someone of his calibre can actually go test the cars and then make a decision - the rest of us can't do that," Paddon says. "We have to make those decisions based on contracts and things."
The Kiwi thinks Ogier will end up driving for the Blue Oval next year.
Meanwhile, his focus is on the development of his new Hyundai with the season-opening Monte Carlo rally just seven weeks away.
"We know the new cars are faster - it depends on the roads and the conditions but they can be anywhere from a second to a second and a half quicker than this year.
"I think our development programme is on track. The team is happy. Our reliability has been very good; that is always the key thing when you test a new car.
"When you drive it it feels good.
"We will prepare as well as we can and go to Monte Carlo and see how we stack up and where we need to improve."