Christmas comes early for Formula One

Michael Schumacher's move to Mercedes GP has been officially announced. It's been confirmed they have agreed a three-year deal, which is a surprise as many thought this would be a one-year comeback special. Instead, Schumi says he's :"looking for continuation". It would appear he plans to help build this team in the same way he shaped Ferrari.

Nico Rosberg has probably developed an ulcer.

The announcement has been expected for some weeks, but it's still quite unbelievable. After the aborted return to Ferrari last year, I think we were all preparing for another let down. When doctors put the breaks on his return in August no one was more gutted than Michael. Since then, he's been rocking backwards and forwards in his Swiss chateau, dreaming of a return to F1. Retirement doesn't suit Schumi. Sitting on the Ferrari pitwall bored the hell out of him.

When Jenson Button signed for McLaren, Ross Brawn called his old friend. The timing could not have been better.

People are asking, at 41 will he be able to keep up with the young bloods. Yes, he can. Michael is in super shape, he will now re-start his regime, he has an amazing gym in his house and his own simulator. He is not Nigel Mansell - Schumacher will be able to get his arse in the car, no probs.

What will be a shock to the system, though, is the competition. Between 2000-2004, when Michael won all five of his Ferrari titles, there was no one who could touch him. But since then, it's like that movie Gremlins and the grid has been sprinkled with water. Now there are all these little monsters running around. Lewis Hamilton and Sebastian Vettel will not give an inch.

Eddie Irvine said last week that Michael still has the ability to win races, but because of his age he will lack the psychological edge that his younger rivals will possess. I'm not sure I buy that. Michael is not the kind of guy who drives with pictures of the wife and kids on the dashboard.

But, when he retired in 2006 he was being beaten by Fernando  Alonso. He seemed to slow a little. Had he already peaked, or was he just tired. Michael says 15 years of top flight competition left him needing a rest.

But will the Mercedes be up to Schumi-standard next year? The prospect of Schumacher reuniting with Ross Brawn is an exciting one. You have to assume, with those two working together again the team will be on song.

Competition between Mercedes, Red Bull, Ferrari and Mercedes will be strong next year. Michael was never happy to finish off the podium, and that will be the case again. With Mercedes-Benz putting all their efforts into it, and Petronas adding further finance to the team, the former Brawn squad are going to be a powerhouse - Michael is the final part of this jigsaw. There is reason for celebration in Brackley, and I think optimism that they can defend their title.

The big question is, why is Michael doing this? He doesn't need the money, he's already got seven titles, and why risk his reputation after a three-year absence.

The answer is he just loves racing.