Mick Schumacher has opted for a second season in Formula 4 for 2016 after signing for Prema Powerteam despite being heavily linked with a step up to the FIA European Formula 3 championship.

Schumacher, son of seven-time F1 world champion Michael, made his F4 debut in Germany's national ADAC series in 2015 and claimed one victory and one additional podium to finish 10th in the final standings. Prema Powerteam has not yet confirmed whether the German will remain in the German series or switch over to the Italian championship.

"Prema for me is the perfect next step on my way to go for the best performance and to become a complete driver," Schumacher said. "The team is very experienced and open, and everybody is really good in working closely with us drivers - plus there is (team boss) Angelo (Rosin) who is behind every detail.

"It already is a lot of fun to work with the team, and I look forward to this challenge and to sharing a cool experience together - I am very proud to be a part of Prema."

Prema team principal Angelo Rosin says he is thrilled to secure Schumacher and hopes his Italian squad can help him continue to develop his racing skills. Schumacher joins the already announced Juan Manuel Correa and Juri Vips in Prema's F4 squad.

"I am proud to welcome Mick Schumacher to our team," Rosin said. "As a driver, he is showcasing a constantly-improving potential and he already has a one-year experience in Formula 4. At his maiden season in single seaters, he quickly showed he has all what it takes to aim for the top.

"We always kept an eye on him because he was a perfect prospect for Prema. He is quick, smart, determined and likes to work hard with the team in the quest for the highest possible level of performance."