Michael Schumacher will head into retirement for a second time at the end of the season, convinced Lewis Hamilton is the man to replace him at Mercedes.

Seven-time champion Schumacher, 43, the most successful driver in Formula One history, has announced his decision to quit for a second time at the end of the season.

His departure from Mercedes was confirmed last week, when it was announced Hamilton had signed a three-year deal with the German firm.

There had been suggestions Schumacher would join Sauber, for whom he once raced sportscars, but his statement at a Mercedes press conference means he has just six races left of a glittering career.

Schumacher has backed Hamilton, saying: "We all know Lewis is one of the best drivers around and I am sure he and the team will have a successful future."

Despite his unsuccessful comeback with Mercedes – Schumacher has scored just one podium in three seasons, after initially retiring in 2006 – his place in the annals of Formula One history is secure.

His first stint in the sport, between 1991 and 2006, saw him rewrite the record books, winning seven world titles and 91 races.

He will be best remembered for helping to revive Ferrari's fortunes after joining that team in 1996.

Hamilton, speaking prior to the news of Schumacher's decision, is in no doubt as to the size of the task that awaits him in filling the seat vacated by the German.

He said: "I don't see myself as replacing Michael. I don't think anyone can replace Michael, he's a legend in the sport, he has achieved so much already."