Lost F1 car to fetch $7 million

The automotive equivalent of a lost Picasso - a 1954 Formula 1 car driven to victory by Juan Manuel Fangio - has been found buried at the back of a shed.

Believed lost for over three decades, the 1954 Mercedes-Benz W196 will be up for auction at this year's Goodwood Festival of Speed in July.

It's expected to fetch more than $7.3 million.

Fangio piloted this silver arrow, designated chassis 00006/54, to victory at the Swiss Grand Prix by over a minute.

It's also a winner at the fearsome Nurburgring.

Powered by a naturally aspirated 2.5-litre straight-eight, the W196 was the car to introduce fuel injection, fully-independent suspension and tubular-space frame construction into Formula 1.

Mercedes-Benz is tipped to be a leading contender to purchase the car, with the brand reportedly keen to add it to its already extensive collection of rare racers.