( CNN ) -- The Mercedes team has denied reports that seven-time world Formula One champion Michael Schumacher must improve next season or face having his three-year contract cut short . The 41-year-old has struggled in his comeback season , having retired in 2006 , and has been outperformed by young teammate Nico Rosberg . Rosberg , 25 , is seventh in the drivers ' standings with four races to go -- while Schumacher is 76 points back in 10th as Mercedes has been unable to emulate the success of the double world champion Brawn team that the German manufacturer took over at the end of last year . German newspaper Bild reported this week that Schumacher 's future was in doubt unless he did better in 2011 , but Mercedes-Benz Motorsport vice-president Norbert Haug dismissed those claims while talking to reporters at a conference at the Japanese Grand Prix . `` Of course there was no ultimatum , '' Haug said after Friday 's practice sessions at Suzuka , a circuit where Schumacher has won six times and was eighth in both runs . Rosberg was 10th and 11th . Red Bull duo top practice times . `` I think Michael again showed today his class , his full commitment . We are currently a little bit handicapped with our car , but I have no complaints and no regrets that we 're going to achieve our target . `` Michael is , for me , as good as he ever was and probably even better . He 's relaxed , concentrated . He does n't need anybody to defend him , certainly not me , but we are very happy with the job he 's doing and we need to give Nico and him a better car . '' Haug admitted that Rosberg had done a better job in getting the best out of his car , and acclaimed him as the best of the young drivers on the F1 circuit . `` It 's not easy for anybody to compete against such a guy , and Michael does that quite well -- not always in qualifying but if you look throughout the season , if you take into consideration that he was not in Formula One for three years , we are heading in the right direction and there is certainly not an ultimatum , '' he said . Meanwhile , reports have claimed that Mercedes could face competition from another German team in the near future , with Porsche considering a return to the grid for the first time since 1964 . Porsche provided engine for McLaren when the English outfit won five world drivers ' and manufacturers ' titles in the 1980s , but has not been involved in motorsport 's elite class since 1991 . The Financial Times Deutschland reported on Friday that Porsche was considering a comeback , while the company 's new chairman Matthias Muller hinted as much to the Autocar website . He suggested that Audi , which is also owned by Volkswagen and has previously said it is not interested in racing in F1 , may focus on LMP1 prototype sportscar racing . `` With LMP1 , there are two classes and two brands : Audi and Porsche . We do not like both to go into LMP1 , that is not so funny . So therefore we have to discuss whether it makes better sense for one of the brands to go into LMP1 , and the other brand into Formula One . So we will have a round-table to discuss the pros and cons , '' he said in an interview at the Paris Motor Show .
German newspaper Stern claims that Michael Schumacher has been told to improve . But Mercedes chief Peter Haug denies that 41-year - old was given ultimatum . Seven - time world champion languishing 10th overall in his comeback season . German manufacturer Porsche announces it may return to F1 racing for first time since retirement .