Michael Schumacher will retire from Formula One for the second time at the end of the season.

Schumacher's seat at Mercedes will be taken by McLaren's Lewis Hamilton in 2013, and with a dearth of other options available to him he has opted to quit the sport at the age of 43.

"I have decided to retire at the end of the season. I still feel I am capable of competing against the best but the time sometimes comes to say goodbye and this time it might be forever," he said.

"I had been thinking about whether I had the necessary motivation to carry on but I do not want to do something I am not 100 per cent committed to. Having made the decision I now feel a release."

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  • Formula One Motor Racing - Canadian Grand Prix

    Michael Schumacher celebrates his win with Ferrari boss Jean Todt (L) and teammate Eddie Irvine (R)

  • AUSTRALIAN GRAND PRIX

    MICHAEL SCHUMACHER CELEBRATES WINNING THE WORLD CHAMPIONSHIP WITH THE BENETTON TEAM

  • Formula One - San Marino Grand Prix - Race - Imola

    Ferrari's Michael Schumacher celebrates his second place finish.

  • Formula One Motor Racing - Italian Grand Prix - Qualifying

    Michael Schumacher celebrates gaining pole position

  • Formula One Motor Racing - Belgian Grand Prix - Race Day

    Ferrari's Michael Schumacher celebrates his seventh World Championship with the rest of the Ferrari team

  • Formula One Motor Racing - Belgian Grand Prix - Race Day

    Ferrari's Michael Schumacher celebrates his seventh World Championship with the rest of the Ferrari team

  • Formula One Motor Racing - Brazilian Grand Prix

    Brazilian Ayrton Senna celebrates at the top of the podium with Damon Hill, second and Michael Schumacher, third

  • Formula One Motor Racing - Malaysian Grand Prix

    Michael Schumacher celebrates winning the race by wearing a red wig

  • German Ferrari driver Michael Schumacher

    IMOLA, Italy: German Ferrari driver Michael Schumacher attends to the inauguration of a picture of Brazilian driver Ayrton Senna on the Imola racetrack after the second qualifying session on the eve of the San Marino Grand Prix, 24 April 2004 in Imola, Italy. Ayrton Senna died ten years ago, during the San Marino Grand Prix, 01 May 1994. AFP PHOTO JEAN-LOUP GAUTREAU (Photo credit should read JEAN-LOUP GAUTREAU/AFP/Getty Images)

  • AUSTRALIAN GRAND PRIX

    MICHAEL SCHUMACHER CELEBRATES WINNING THE WORLD CHAMPIONSHIP WITH THE BENETTON TEAM

  • Formula One - Spanish Grand Prix, Barcelona

    Britain's Nigel Mansell (right) celebrates by giving Germany's Michael Schumacher a drink of champagne

  • Motor Racing ... Japanese Grand Prix

    The new World Champion Damon Hill celebrates with the old World Champion Michael Schumacher

  • Schumacher British Grand Prix

    Ferrai's Michael Schumacher celebrates his victory as he goes round Club Corner at the end of Foster's British Grand Prix at Silverstone, Northamptonshire.

  • British Grand Prix Hakkinen

    McLaren's Mika Hakkinen (right) from Finland celebrates with Ferrari's Michael Schumacher from Germany after winning the British Grand Prix at Silverstone.

  • Auto - Race Of Champions 2007 - Wembley

    Michael Schumacher celebrates as Team Germany win the ROC Nations Cup during the the Race of Champions 2007 at Wembley Stadium, London.

  • Auto - Race Of Champions 2007 - Wembley

    Germany's Michael Schumacher with team mate Sebastian Vettel (left) as Team Germany win the ROC Nations Cup during the the Race of Champions 2007 at Wembley Stadium, London.

  • Schumacher British Grand Prix

    Ferrari's Michael Schumacher celebrates on the podium after winning the Foster's British Grand Prix at Silverstone in Northamptonshire.

  • Motor Racing - Race of Champions - Wembley Stadium

    Michael Schumacher (2nd left) of Team Germany celebrates winning the ROC Nations Cup

Schumacher's first stint in F1, between 1991 and 2006 saw him rewrite the sport's record books, winning seven world titles and 91 races.

He will be best remembered for helping to revive Ferrari's fortunes after joining the Prancing Horse in 1996 as part of the 'Dream Team' along with Ross Brawn, Jean Todt, Rory Byrne and Paolo Martinelli, winning five straight titles between 2000 and 2004.

He retired at the end of 2006, but was convinced to make a comeback with the Mercedes team in 2010 by close friend Brawn. However, his return to the sport he once ruled has not been a success and he has taken just one podium finish over the last three seasons, that result coming at Valencia earlier this year.