Former F1 champion Michael Schumacher is tipping Sebastian Vettel to one day become Formula One world champion.

Seven-time F1 king Schumacher and rising star Vettel were again the team to beat at Wembley on Sunday as they retained the Nations Cup for Germany at the Race of Champions.

"I enjoy watching him. He has his own character, which he needs to develop, and then the results will come," said Schumacher of the 21-year-old. "He has the genes to become world champion one day, something he has demonstrated this year."

Vettel, who last season became the youngest winner of a grand prix, will drive for Red Bull next season after spending the last year and a half at sister team Toro Rosso.

It is likely only another move on to one of the major marques will increase his chances of making good on Schumacher's prophecy.

But a content Vettel said: "I'm feeling good about next year.

"There's still a lot of work ahead of us, but we are willing to work long and hard to get things right."