Diversity ... Michael Schumacher wants to see more women racing in Formula 1. Source: Rob Griffith / AP

Michael Schumacher has helped launch a CAMS-funded Women of Australian Motorsport scholarship aimed at improving the odds for women competing in racing during a luncheon in Melbourne.

And the former Formula 1 champion says women have no physical barriers to competing at the top level.

"There is no reason why women should not be competitive in any of those fields that we have available in motor sport because physical limits - even in F1 - they're not so high that women couldn't do it," Schumacher said.

"I mean if you look at the athletics I'm pretty sure there are a few women who are fitter than I am.

"The main issue, why we don't see so many, is in the early days when you start to prepare to become a racing driver, it's a very small percentage of women doing it.

"That's why in the end, developing to the final stage, there is a left over chance of very little and I think this is the principal issue."

The recipient of the scholarship will be selected by a committee consisting of Steven Richards, and Women of Australian Motor Sport committee members Leanne Tander and Sue Evans.

Tander is the wife of V8 Supercars driver Garth Tander and a successful racer in her own right. She is also Australia's delegate to the FIA's Women and Motor Sport Commission.

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Schumi launches women's scholarship