(RacingWire) - The Formula One speculation machine is operating at full throttle as rumors circulate about the possible return of seven-time World Champion Michael Schumacher.

The 40-year-old Schumacher retired from Formula One in 2006 and has been a consultant to Ferrari ever since.

Speculation is that Schumacher will reunite with Ross Brawn at the newly named Mercedes F1 team.  Brawn and Schumi had much success together at Ferrari.

Schumacher briefly agreed to fill the seat left open after a freak accident sidelined Felipe Massa for the remainder of the 2009 F1 season.  His comeback spun out before ever leaving pit lane when Schumacher decided he hadn't recovered fully from neck injuries he received in a motorcycle accident

German magazine Bild is reporting the deal has been reached and is awaiting signatures.  Germany's Focus magazine quotes Mercedes officials as saying until the seat is filled anything is possible.

Mercedes GP has confirmed Nico Rosberg will fill one of the team's two seats in 2010.  Both Mercedes seats opened up when the team released veteran driver Rubens Barrichello and 2009 World Champion Jensen Button left the team to join McLaren.