Schumacher close to deal with Mercedes: report

Berlin: 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 on Saturday.

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 next week, without citing any sources.