Michael Schumacher is close to signing a deal with Mercedes to come out of retirement and compete in Formula One next year, Germany's Bild newspaper reported yesterday.

Mercedes have signed Germany's Nico Rosberg for 2010 but have yet to name his team-mate with media speculation swirling around the retired 40-year-old German.

Bild said a deal with the seven-times world champion could be announced as soon as this week, without citing any sources.

Schumacher was lined up for a brief comeback this year as a stand-in for injured Ferrari driver Felipe Massa but had to pull out due to his own neck problem.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.