Seven-times Formula One world champion Michael Schumacher is back.

The motor-racing legend has signed a three-year contract to drive in 2010 with the Brackley-based Mercedes GP team, ending three years in retirement.

Schumacher said: "The motivation is pretty straightforward. I got a call from Ross (Brawn, team principal) at the beginning of November asking me to race again, telling me Mercedes were going to be involved. I've never left the race track, and after three years I regained the energy I'm feeling now. After playing around on motorbikes, I'm ready for the serious stuff."

The announcement comes 11 days ahead of Schumacher's 41st birthday on January 3, easily making him the oldest driver in next year's championship.

Schumacher was poised to make a comeback with Ferrari in the summer to fill in for the injured Felipe Massa, but had to back out because of a neck injury which he now insists is not a problem.

"Before giving the final okay, I had to make sure my neck was okay," he said. "It wasn't okay in the summer, but it's had the time to heal completely."

This news finally ends the speculation that has surrounded the German over the past few weeks since the season-ending Abu Dhabi Grand Prix in early November.

Schumacher was seen in talks with Daimler boss Dieter Zetsche and Brawn GP team principal Ross Brawn in the paddock of the Yas Marina circuit.

Just a fortnight later, Mercedes had taken over Brawn and new world champion Jenson Button was on his way to McLaren.

That further opened the door for Schumacher, the most decorated man in F1 history, with the rumours intensifying that he would line up alongside fellow German Nico Rosberg.

Rosberg said: "It is fantastic that Michael is returning to Formula One and will be my team-mate.

"It's a great challenge for me to be up against one of the best drivers of all time. I'm sure that we will form a very strong partnership as he will have lost none of his speed! It is also great news for our sport and the fans."

Ross Brawn, Mercedes GP team principal, said: "As seven-time World Champion, Michael's outstanding record in Formula One speaks for itself and I am looking forward to working with him again.

"With the completion of our driver line-up, I believe that we now have the most exciting partnership in Formula One with Michael and Nico, who provide the perfect mix of talent, experience, speed and youth.

"We can now turn our full attention to the preparations for the new season and everyone at Mercedes GP Petronas is extremely excited about the challenge ahead.

"With the investment and support in our team provided by Daimler, Aabar and our new title partner Petronas, and with two such exciting drivers, we have all of the building blocks in place to have another successful season in 2010."

Norbert Haug, Vice-President of Mercedes-Benz Motorsports, said: "In April 1991, when I had been in charge of the Mercedes-Benz Motorsport programme for just six months, Michael was standing beside me on the balcony one evening. "Without the slightest doubt, he said in a low voice: 'It's about time that I got into Formula 1'. Michael had just turned 22 years of age and four months later, he made his debut at Spa in a Jordan.

"Mercedes-Benz helped him to this point and the rest is history: seven World Championship titles, more than any racing driver, 91 Grand Prix wins, more than any racing driver. Michael has more of everything than every other driver.

"As part of the Mercedes Junior Programme, Michael had raced in Group C sports cars and competed in a few DTM races.

"Ross Brawn, then our opponent at Jaguar, quickly realised Michael's talent and they went on to win all seven of his Drivers' World Championship titles together at Benetton and Ferrari.

"Our sporting ambition has always been that Michael should drive again where his professional career had started and Michael knew that. "We often joked about it after the races and discussed the prospect seriously several times during the last 14 years in Formula 1.

"It didn't happen in 1995, it didn't happen in 1998 and it didn't happen in 2005. I am delighted that it will now happen in 2010.

"I am very much looking forward to working with Michael and everybody at Mercedes-Benz and Daimler extends a very warm welcome to our 'apprentice' of 19 years ago. That apprentice is now the most successful racing driver of all time."