F1 boss Bernie Ecclestone believes Lewis Hamilton's decision to join Mercedes next season will be pivotal for the German team.

Hamilton's decision to switch from McLaren to Mercedes was announced at the end of last month, and while some have questioned the wisdom of the move, Ecclestone believes it is definitely a boost for the Brackley-based outfit, which has had a pretty mediocre year, apart from Nico Rosberg's impressive victory in China back in April.

"I think it [signing Lewis] is good for Mercedes," Ecclestone told British newspaper The Guardian ahead of this weekend's 2012 F1 Indian Grand Prix at the Buddh International Circuit.

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"If they are really going to get their act together they need someone like Lewis who is going to do a bit of inspiring for people that want to go and work there.

"Nobody wants to work for a team that doesn't look as if it is doing well, but now maybe they will. I think Lewis's name is a stamp of good housekeeping, which is what everyone expected of Michael [Schumacher]."

Meanwhile, Ecclestone also added that McLaren's decision to draft in Sergio Perez as Hamilton's replacement was a wise move too.

"I probably would have done what they [McLaren] have done [in signing Perez]," Mr E. continued.