German daily Bild claims seven-time Formula One champion Michael Schumacher will come out of retirement to drive for Mercedes next year.
A report in Saturday's edition of the newspaper says the two parties have agreed to a one-year contract and will announce the deal next week.
Mercedes said that "there is always speculation as long as one seat in our team is not taken."
Schumacher's spokeswoman, Sabine Kehm, declined to comment on the report.
The 41-year-old Schumacher retired in 2006 after winning a record number of F1 titles. He abandoned plans for a temporary comeback with Ferrari this year due to a neck injury in a motorcycle crash.
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