UPDATE 1-Motor racing-Mercedes play down Schumacher speculation

* Mercedes play down speculation over Schumacher

* Driver's spokeswoman says comeback highly unlikely (Adds quote from Schumacher spokeswoman)

By Alan Baldwin

LONDON, Nov 21 (Reuters) - Mercedes have played down, without completely dismissing, media speculation that seven times Formula One world champion Michael Schumacher could come out of retirement as Jenson Button's replacement.

"It's clear that there will always be speculation as long as one cockpit is still free," said a spokesman for the German carmaker, who have taken over world champions Brawn, on Saturday.

"And some speculations are nothing but dreams which will not come true."

Schumacher's spokeswoman Sabine Kehm said she would be surprised if the German came out of retirement at the age of 41.

"Michael is enjoying his life very much. To me, a return would therefore be highly unlikely at the moment," she said.

Britain's newly crowned world champion Button has moved to McLaren where he will have the number one on his car as team mate to 2008 champion and compatriot Lewis Hamilton next season.