According to a report in the Daily Telegraph, 'Schumacher has been sounded out about a sensational return to Formula One next season' with Mercedes Grand Prix.
The newspaper claims that given 'Mercedes takeover of Brawn GP and World Champion Jenson Button's shock switch to McLaren, the possibility of a German dream team with Nico Rosberg is emerging.
'The associations would line up beautifully. Schumacher won all his World titles under the guidance of Ross Brawn at both Benetton and Ferrari, and Brawn will continue in the role of team principal at the newly minted Mercedes team.'
The deal, which would net Schumacher the same salary that Button turned down at Brawn GP in favour of McLaren, would finally see the German teaming up with Mercedes, who were in the past unsuccessful in their bids to lure him away from Ferrari.
'Talks are understood to be at an early stage,' claims the Telegraph.
World Champion Button joined Lewis Hamilton at McLaren earlier this week after the Brawn team with which he won the Drivers' title was renamed Mercedes.
Jordan, who ran an F1 team under his own name, told Radio Five Live: "I believe the Brawn team will have Michael Schumacher in it next year.
"And my reasons for believing that is that at Abu Dhabi, the grand prix, the last race Dr (Dieter) Zetsche - (chairman of the Daimler board) - Ross Brawn and Michael Schumacher were deep in conversation and I believe it was to do with possibly joining the team as driver for the 2010 Championship."
Meanwhile, Michael Schumacher's spokesperson Sabine Kehmn has denied reports that the German is talking with Mercedes GP about a possible comeback next season.
Earlier this week, reports emerged that Mercedes, who recently purchased a 75.1 percent stake in Brawn GP, are keen on Schumacher joining them for next year's Championship.
'Talks are understood to be at an early stage,' claimed the Daily Telegraph.
However, Schumacher's spokesperson says that while a link up between the seven-time World Champion, the German car manufacturer and Ross Brawn would be a fairytale story, there has been no talk of it.
"The whole story with Mercedes is a beautiful one with so many things fitting together with Michael and Ross, but it is a full season next year and there are no negotiations going on," Kehm told The Times.
However, Kehm did give Schumacher fans a glimmer of hope when asked the same question by The Guardian. "You can never say never in this sport but to me it is highly unlikely at the moment."
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