The greatest driver in Formula One history is ending his three-year retirement and returning to the company that gave him his start in high-level motorsports. Michael Schumacher has signed a contract with Mercedes Grand Prix for three years at about £20 million.

The fact that Schumacher is coming back isn’t a great surprise. Many observers felt that his retirement was forced by Ferrari who had signed Kimi Raikkonen for a contract starting in 2007 before the start of the 2006 season. He kept busy for a while by participating in motorcycle races and other special events. Last season, a persisting neck injury was all that kept him from substituting for the injured Felipe Massa for the final third of the season.

Schumacher holds almost every major Formula One record including most wins, most pole positions, most points scored and most World Drivers’ Championships. He won each of his seven titles while under the guidance of Ross Brawn who is the head of the Mercedes GP effort.

While he is most closely associated with Ferrari, Michael’s first major backer was Mercedes-Benz. In 1990 and ’91, he was a Mercedes factory driver in the World Sportscar Championship. In its heyday, the WSC rivalled F1 in terms of prestige but when some manufacturers left to race in F1, the series quickly collapsed. Mercedes had been rumoured to have been courting Schumacher to drive for them since the mid-90s.

It was Ross Brawn who initiated contact with Michael this time, not a Mercedes representative. In November, while the team was still known as Brawn GP, Brawn mentioned to Michael that there may be a seat available at the team in 2010. When Jenson Button left for McLaren, the seat was Schumacher’s for the taking.

It will be interesting to see how Michael adapts to the changes in Formula One since he last raced in 2006. The cars now have slick tires, less downforce and will carry a full race distance worth of fuel on board at the start of each race. There will also be three tracks that will be new to him but not the rest of the field (Valencia, Singapore, and Abu Dhabi). It’s likely to be a steep learning curve for the seven-time World Champion as he makes his return to the pinnacle of motorsports.