Nico Rosberg has announced he would be happy if Michael Schumacher stayed at Mercedes beyond 2012.

Seven time world champion Schumacher's current contract runs out this season, and there has been speculation he could either stay or be replaced possibly by McLaren's Lewis Hamilton.

Rosberg knows Hamilton well from their karting days, but the German indicated he would be happy to stay alongside Schumacher.

"It is quite possible that he will stay, and that would be a good thing," he told the DPA news agency.

"Technically, we complement each other well, which of course for the development of the car is always helpful," added the 26-year-old.

Rosberg, meanwhile, has received a ringing endorsement by F1 chief executive Bernie Ecclestone.

"He's very talented and is capable of winning races. Let's hope he does this season," said the Briton.

43-year-old Schumacher, however, is not sure.

"Victory (in Australia) to me is unlikely," he said on his official website. "I see Red Bull in front.

"Behind them it will be tight, and you can be either hero or zero very quickly."