Red Bull will decide in the first half of 2018 whether to switch to Honda power next year.
After the McLaren-Honda divorce, the Japanese engine supplier has moved on to Red Bull's second team, Toro Rosso.
Dr Helmut Marko, the Red Bull official, said that he has been "positively surprised" with what he has seen from Honda so far.
"So far we're positively surprised by Honda, also in terms of their dedication and enthusiasm," he told Auto Motor und Sport.
"I think they have learned from the mistakes that certainly happened.
"So far, according to the test stands, the engine is reliable. I think it will be possible for the engine to catch up to Renault level by mid-season."
If that happens, Red Bull are likely to make the switch from Renault to Honda for 2019.
"The regulations have changed so that you have to announce what engine you want to compete with the following year by the summer," said Marko.
"We will analyse thoroughly and then make a decision."
The 2018 season gets underway next month with the Australian Grand Prix.