After two years racing an old-spec Mercedes in the DTM series, regulation changes mean the 40-year-old will line up this season in a new C-coupe.
The former Formula 1 star has found it tough in DTM and did not score his first point until the final race of his debut campaign in 2010, and last year finished 16th overall. But now the 2001 Formula 1 world championship runner-up and 13-times grand prix winner is in with a fighting chance.
The Scot said: “New cars, new technical regulations and a third manufacturer promise to make the championship more exciting than ever before. I’m looking forward even more to my third year with Mercedes-Benz in this highly-competitive championship, and I now have two years experience to draw on.
“In the past two years I’ve had to learn a lot about the engineering, the driving technique and about DTM racing in general. In 2012, I want to continue my progress and post some respectable results.”
The new season, which sees BMW enter the fray alongside Audi and Mercedes, begins at the end of April at Hockenheim.