Hamilton to Mercedes, Schu back to retirement - reports

Multiple authoritative media sources in Britain and Germany are reporting that the respective futures of Lewis Hamilton and Michael Schumacher will finally be announced on Friday.

Hamilton has reportedly agreed a three-year, perhaps $100 million deal to move from McLaren to Mercedes, pushing the seven time world champion Schumacher back into retirement.

Writing in the Telegraph, Tom Cary said Friday’s announcements from Stuttgart will follow the Mercedes board’s signing of the 2013-2020 Concorde Agreement.

"McLaren are only understood to have been informed of Hamilton’s decision yesterday," said Cary, who revealed that the British team looks likely to replace the 2008 world champion with Sauber’s Carlos Slim-backed Sergio Perez.

Cary added that McLaren could also make an official announcement on Friday.

Schumacher, 43, has been linked with a move into Mercedes team management, or to Sauber as race driver.