Mercedes chief executive Nick Fry has dropped a strong hint that Michael Schumacher will come out of retirement to race for them next season.

The seven-times world champion is seen as a perfect fit for the new guise of the Brawn GP team and is widely expected to end his role as a consultant with Ferrari to make the switch before the start of the 2010 Formula One season.

Schumacher has not raced competitively since 2006 but the 40-year-old German almost made a temporary comeback for Ferrari last season as cover for the injured Felipe Massa.

"He would be very good for our team," admitted Fry.

"The view from inside F1, not just my team, is they all hope it will happen."

A long-standing neck injury put paid to Schumacher and Ferrari's hopes that he could make a comeback last season when Massa suffered a fractured skull.

Mercedes have already signed German driver Nico Rosberg for the 2010 season.