Ferrari offers Schumacher new deal

Schumacher, 34, is understood to be earning about £25million a year on his current deal, which expires at the end of next year. The German is currently taking a break from testing following Sunday's Australian Grand Prix, allowing him the chance to deliberate over the offer. He has raced for Ferrari since 1996.

His manager, Willi Weber, told German daily newspaper Die Welt: "I have received an offer from Ferrari that will go beyond 2004. Michael will let me know when he is ready to talk about it."

Schumacher once again displayed his worth to Ferrari at the weekend by bringing home his damaged car in fourth position. Ferrari is understood to be offering less money as the driver market is in decline - top earners such as Eddie Irvine has been forced out of the category, and younger drivers, who will accept lower salaries, have taken their place.

Schumacher's other options to extend his F1 career beyond 2004 would include McLaren-Mercedes, Toyota and Williams-BMW, but he has often voiced his contentment within the Maranello squad.