Seven-times world champion Michael Schumacher has signed a one-year deal to return to Formula One racing with Mercedes GP for the 2010 season, online version of German magazine Bild reported on Tuesday evening.
Having retired in 2006, Schumacher, who turns 41 on January 3, will be paid seven million euros (9.9 million US dollars) to be on the grid when the new season starts with the Bahrain Grand Prix on March 14 2010, reported Bild.
It will be 1239 days after his last Formula One race in Sao Paulo at the Brazilian Grand Prix in October 2006 and Schumacher joins Mercedes in an all-German racing team after compatriot Nico Rosberg, 24, signed up last month.
Bild reported Schumacher signed the contract on Tuesday at Mercedes' headquarters in Brackley, England, to return to Formula One having won 91 of his 250 Grand Prix races and started in Pole Position 68 times.
Schumacher had been due to make a remarkable return last season for Ferrari -- for whom he acted as a consultant after retiring -- as a replacement for the injured Felipe Massa but was unable to because of a neck injury.
Schumacher's signature is a major coup for Mercedes, who raced under the Brawn GP banner last season, and a blow to Schumacher's former stable Ferrari.
Ferrari president Luca di Montezemolo admitted last week he is distraught at the prospect of losing Schumacher to a rival team.
Di Montezemolo started working with Schumacher in 1996, when the German joined the Italian constructor from Benetton.