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30 July 2017, 01:26 | Clyde Nash
His teammate Kimi Raikkonen of Finland was placed second in 1:17.492, increasing the expectation of the Maranello-based team for the upcoming qualifying session.
Bottas added: "We knew it should be close and they would be tough to beat and they had the upper hand today".
The Briton failed to equal the Formula 1 record of 68 pole positions and will have to wait on that accolade after finishing fourth-fastest in Q3.
Vettel saw tyre issues hit his progress at Silverstone in the British Grand Prix last time out, but the former World Champion remains confident.
And that is in his opinion.
"I am enjoying it, being part of the Ferrari family", said Vettel.
"There is no other team, apart from Ferrari, that would be interesting but right now, I love being here and the people I work for and work with. Obviously, the last race wasn't great for us, but we are here now".
Vettel had been more than a second slower than Ricciardo in sixth place on a warm but cloudy morning at the Hungaroring outside Budapest. "The race is on", Hamilton said. "Maybe strategy or the tires will come into play in a bigger way". "But it will be a long race and anything is possible".
If it comes down to pure racing speed, and with no incidents, Ferrari looks to be the clear favorite on Saturday's evidence.
Wolff said he believed Mercedes' drop in form compared with recent races was caused by the different nature of the Hungaroring track.
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"I think this track has been my most successful track, and I hope that this is still the case this weekend. The DNA of our vehicle just seems to be more stable on faster circuits (than Hungary)".
This is Vettel's second pole position of the season, having taken the top spot in Russian Federation and it is the third time he has claimed pole in Hungary, having done so twice before for Red Bull in 2010 and 2011.
"We can't follow or overtake a vehicle that is as fast or faster", said the Briton. "The vehicle has been incredible today and I love this track".
Raikkonen was.168 behind in front of many flag-waving Finnish fans.
It's some change from how Vettel felt after the British GP, where he finished in seventh. Hamilton dashed back into the pits before setting a time.
Teammate Valtteri Bottas says Mercedes have work to do on the balance of the vehicle.
Dutch teenager Max Verstappen was fourth on the timesheets for Red Bull.
Meanwhile, McLaren-Honda duo Fernando Alonso and Stoffel Vandoorne took eighth and tenth, with the Toro Rosso of Carlos Sainz sandwiched in between.
Meanwhile, British driver Paul di Resta climbed into an F1 auto for the first time since November 2013.
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