Schumacher to leave Mercedes and will be replaced by Hamilton

Media reports from Germany confirm what has been rumoured for sometime: Michael Schumacher's contract will not be renewed by the Mercedes team. An official statement announcing his retirement is expected later today.

Schumacher's succesor will be Lewis Hamilton. According to the reports, he agreed to a $100 million contract in order to leave the McLaren team. McLaren were taken by surprise by this decision and are likely to find a replacement in Sauber's Sergio Perez. A statement from the British team is also expected on Friday.

*Updating*

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