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Lewis Hamilton says Ralf Schumacher's decision to come out as gay "sends such a positive message" but that Formula 1 needs to make more progress on inclusivity.
Schumacher, who raced in F1 from 1997 to 2007 and won six grands prix, said in a social media post, external at the weekend that he was in a same-sex relationship.
Hamilton said: "Clearly he has not felt comfortable being able to say it in the past. It is definitely not a new thing.
"But it shows that we are in a time finally when we can take that step and don't have to fear. And hopefully he will be able to say that he's, I think, so far had only positive feedback from people [in F1] and that's because of the time we're living in and the changes we are."
Schumacher's sexuality was known within F1 when he was racing, but the German, the brother of seven-time champion Michael Schumacher, had never discussed it publicly and within the sport his privacy was respected.
Hamilton, speaking at the Hungarian Grand Prix before Sunday's 13th round of the F1 season, said that all sports "have a long way to go" before all members of society felt comfortable.
"It is one thing saying it’s inclusive and it’s another actually making sure people feel comfortable in the environments," the Mercedes driver said.
"This is a male-dominated space and as far as I know he is one of the first to at least publicly be speaking in that respect.
"We are very inclusive within our team, but the sport does need to continue to do more to make people feel more comfortable, make women feel more welcome in this space, because I know they have not always been treated well in this space. So we can 100% do more."
Other F1 drivers also welcomed Schumacher’s move.
McLaren’s Lando Norris said: "It's a good thing. From an inclusivity and diversity point of view, F1, McLaren, we have pushed for it a lot over the last three or four years especially, the whole world kind of moved in that direction.
"And whether it's this or talking about mental health, you just want people to live their life and be happy and not feel like they are going to get judged, so I'm very happy for him."
Aston Martin's two-time champion Fernando Alonso said: "Total support from my side and I'm sure all the F1 community. It's great that he feels good and we all feel good for him as well."
A spokesperson for F1 told BBC Sport: "It is a very positive thing for the sport and for Ralf that he has announced this news.
"It shows that F1 has taken big steps forward in inclusivity and diversity and he feels able to be open about his sexuality.
"We want to keep pushing to ensure everyone feels accepted and welcomed for who they are but we should all be proud of the progress we are making. We want to show everyone that our incredible sport is open to you."
Hamilton, however, said that F1 needed to make progress in all areas, and singled out disability access as another problem.
And he said that the sport had made a lot of progress since he and Sebastian Vettel protested about an anti-LGBTQ+ law in Hungary three years ago, and took similar stances in countries such as Saudi Arabia and Qatar, whose human rights records have been heavily criticised.
Hamilton said: "That's all started from Seb and I standing on the grid here and fighting against what the government was doing here. And in Saudi and Qatar, I remember Ralf said it wasn't a good idea to do those things.
"Perhaps today he may have shifted his mind. And even him taking that step sends such a positive message and liberates others to be able to do the same. We need more and more people to be free to do that."