We present MERLIN observations of the symbiotic nova V1016 Cygni made at 6 cm between 1992 and 1997 and at 18 cm in 1993 and 1997. In the 6-cm images we find complex structure which has not been previously seen, in particular three bright components. These components do not appear to be expanding as would be expected from the remains of a hot wind resulting from the nova outburst. The change in positions of two of the features exhibits tentative east–west movement. The brightness temperature of the peak with the highest flux density remains above 50 000 K in all epochs, thereby confirming the presence of shocked material in the system. At 18 cm there is no evidence of any non-thermal emission as might be expected from comparison with a sister star, HM Sge.