Michael Schumacher's manager insists the seven time world champion is staying at Mercedes next year.

After a strong race in Canada, speculation about the 42-year-old's future returned when he finished a lowly 17th last Sunday at Valencia.

At the Spanish port venue, team boss Ross Brawn was quoted as suggesting Schumacher's contract actually covers only 2010 and 2011, with the famous German in control of a one-year 'option' for 2012.

But Schumacher's manager Sabine Kehm told DPA that the subsequent media reports were wrong.

"The interpretation that has been applied is wrong," she said, adding: "Michael's contract for 2012 is secure, he has a three-year contract."

Mercedes' motor racing vice-president Norbert Haug agreed: "Michael has said it himself that he has signed a three-year contract with Mercedes GP, and I acknowledge that."