Michael Schumacher saw his title hopes for this year's Formula One championship go up in smoke Sunday at the Japanese Grand Prix.

The German's engine blew on the 37th lap, opening the door for reigning world champion Fernando Alonso to win at Suzuka and take a 10-point lead into the season's final race.

With his seventh win of the season Sunday in Japan, Fernando Alonso strengthened his hold on the driver's championship.
(Yoshikazu Tsuno/AFP/Getty Images)

"I was leading the race and then suddenly the engine went up in smoke," said Schumacher, who will retire after this season. "And I knew immediately what it meant for the race and championship.

"For me, the championship is over," he said. "I have to say clearly I don't really believe in the championship anymore."

At first Alonso didn't realize it was Schumacher's red Ferrari pulling off the track.

"I thought [the car] was orange and not red," Alonso said. "I was so concentrated I didn't realize until I was side by side that it was Michael."

The Formula One title will be decided at the Brazilian GP on Oct. 22, with Renault's Alonso leading Schumacher of Ferrari 126-116 in the standings.

All Alonso needs to do in Brazil is finish in the top eight and score a point to secure the championship.

"The championship will be decided in Brazil as we all expected," said Alonso. "We have to be safe, don't take too many risks."

Schumacher has already conceded it to him.

"We all know that it is one point that Fernando needs and Fernando is a very good driver and that should not be any problem," he said.

1st win since Montreal

Schumacher, a seven-time world champion, said he doesn't want to hope that somebody else is forced out of a race by a problem for him to gain a victory.

"I don't want to go into a race hoping my opponent will retire," said Schumacher. "That is not the way I want to win a championship."

Felipe Massa finished second to keep alive Ferrari's hopes of winning the constructor's title, while Alonso's teammate Giancarlo Fisichella finished third.

When Schumacher went out, Alonso maintained his gap over Massa through the last 15 laps, and after crossing the finish line, swerved left and right repeatedly in celebration.

It was the Spanish driver's first win since the Canadian GP in Montreal more than three months earlier. He has now won 15 career races.

"[This win] was something I was thinking about from Canada and I didn't have the opportunity to do it," Alonso said.

After completing his victory lap, Alonso jumped onto his car and imitated a bird standing on one leg. He then he ran into an open area where he danced and did a spin before hugging nearly every blue-and-yellow clad teammate in sight.

The title race is now back in Alonso's hands, but he isn't taking anything for granted.

"I think it is a little too early, but for sure the same thing can happen in Brazil," he said. "For sure we are now in a much better position than before. Now we only need a few points and it becomes a bit easier."

Wave goodbye

Jenson Button was fourth, while Kimi Raikkonen finished fifth. Toyota's Jarno Trulli and Ralf Schumacher were next, with Nick Heidfeld of BMW-Sauber came eighth.

Michael Schumacher overtook pole sitter Massa as they entered the third lap, with the Brazilian making no move to hold on to the lead.

Alonso moved into second after 13 laps when Massa and Ralf Schumacher went into the pits. He held position after his own pit stop three laps later.

Michael Schumacher appeared to be cruising to victory when smoke emerged from his car's engine just after his pit stop on the 36th lap. He slowed and watched Alonso pass him as he steered off the track.

Alonso inherited first place and a 10-second lead over of Massa with 16 laps remaining.

Schumacher remained composed as he walked back to the pits with his helmet in hand, and even managed a wave to the crowd.

When he got back to the Ferrari garage in the 45th lap, he hugged and shook hands with various members of the team. He then watched the race for a few laps from the pit stand before going to his private room in the paddock.

Renault now has a 195-186 lead over Ferrari in the constructor's championship, which Schumacher thinks there is still a chance of winning.

"That is why we go to Brazil," he said. "We try to do everything to get the constructor's championship because there we have our chances and we will try to do our best."

Sunday's F1 race was the last at Suzuka as the Japanese GP moves next year to the track in Fuji.