Schumacher will represent Dutch outfit Team van Amersfoort from April, after impressing team bosses.
"He spent a full day in the simulator at our headquarters in the Netherlands. Then we witnessed him during a test session at Valencia and eventually, we reached an agreement to compete together in this year's ADAC Formula 4 series," team owner Fritz van Amersfoort told the team's official website.
Formula 4 was created as a division in which young drivers could be groomed for potential careers in Formula One.
The 15-year-old Schumacher makes the step up after finishing second in the 2014 German kart championship.
The announcement comes as the world continues to wait and hope that Schumacher senior will recover from the traumatic brain injuries he suffered in a skiing accident in December 2013.