The Ferrari duo Vette and Kimi Raikkonen wrapped the front-row lockout for tomorrow Hungarian race.
Hamilton, currently one point behind the Vettel in the standings and a five-times winner in Hungary, will start from a disappointing fourth place on the grid and alongside his Mercedes team mate Valtteri Bottas.
The triple-time world champion Hamilton had been expecting to match Michael Schumacher’s all-time pole record and had set the fastest lap of the second phase of qualifying.
The Red Bull youngster Max Verstappen took fifth, just 0.021s ahead of his teammate Daniel Ricciardo, who set fastest time Friday both practice session.
Nico Hulkenberg hauled his Renault to seventh but is due to drop to 12th place on the grid when his five-place gearbox penalty is applied ahead of Sunday’s race.
Nico’s penalty will lift Fernando Alonso to seventh place in the McLaren-Honda — his joint best grid position of the season along with Spain — ahead of teammate Stoffel Vandoorne in eighth place.
Toro Rosso’s Carlos Sainz qualified tenth but will move to ninth following Hulkenberg’s penalty.