Mercedes is eyeing a new two-year contract extension for Michael Schumacher, according to the major German newspaper Bild.

The seven time world champion, having returned to F1 with the famous German marque in 2010, has not decided whether or not to continue his comeback beyond this season.

"Bild knows that Mercedes wants to keep him," said the newspaper, after the Brackley based team's new W03 car was launched in Barcelona.

The report said Mercedes has decided to offer Schumacher, 43, a new two-year deal through 2014.

"Before we talk to any other candidate, our first contact will definitely be Michael," confirmed team boss Ross Brawn.

Schumacher commented: "I'll decide when the time is right."