Word that seven-times world champion Michael Schumacher will make his Formula 1 comeback via Mercedes GP has been circulating for quite some time, but he has finally signed for the Silver Arrows, according to an AFP report which quotes Bild.de.

The report says that Schumacher, who will turn 41 in January, signed a one-year deal for the 2010 season worth seven million euros, adding that the contract was signed on Tuesday at Mercedes’ headquarters in Brackley, England.

Schumi, who retired in 2006, will join compatriot Nico Rosberg in an all-German line-up for Mercedes GP Petronas Formula One Team. He will also be reunited with Ross Brawn, the mastermind behind his seven titles at Ferrari and Benetton. Michael has competed in 250 Grand Prix races, winning 91 of them, and started in pole on 68 occasions.

UPDATE: It’s official! Mercedes GP has unveiled their star driver at its Brackley HQ. About the condition of his neck, Schumacher has this to say: “It wasn’t OK in the summer, but it’s had the time to heal completely, there is no further issue with the neck – 100%,” he told BBC.