While the Italian team is not ready to commit to the Finn for 2018, there are reports Sebastian Vettel is making a new deal for the 37-year-old a condition of his own contract extension beyond this season.
Schumacher, 42, raced against Raikkonen in his own F1 career and told Finland’s Ilta Sanomat: “In terms of talent I think Kimi is brilliant.
“He is already a world champion but is certainly able to achieve more,” the German said while overseeing his kart team in Finland.
“When you take into account his age, he’s doing a great job,” Schumacher added. “I think Ferrari has been smart to keep him as a driver.
“This year he has a good car, but Sebastian Vettel has been stronger. I think it’s ideal for Sebastian, but Kimi is still able to win races. We’ll see what happens next season,” he said.
Schumacher also said he is enjoying watching F1 as a spectator this year.
“It has to be said that F1 has become very interesting now that Ferrari and Mercedes are fighting each other,” said the former Williams driver.