The victory was the German’s eighth in 11 races, giving him an unbeatable lead of 62 points with a maximum of 60 remaining to be won.
In equalling the late Argentine Juan Manuel Fangio’s record of five championships, and three in a row, Schumacher became the first driver to win the title as early as July and with six rounds in hand.
Schumacher also set a record of 16 successive points finishes, beating Argentine Carlos Reutemann’s 15.
In an error-strewn race, luck played into the German’s hands just as it seemed the title chase was destined to be extended by another week.
Finland’s Kimi Raikkonen was heading for his first Formula One win when, with five laps to go, his McLaren skidded wide and conceded the lead to Schumacher.
The German knew he would be champion if he won and neither Brazilian team mate Rubens Barrichello nor Colombian Juan Pablo Montoya finished second. He did that, beating Raikkonen by 1.1 seconds.
The battle was half won before the start when, in a spectacular shambles for the Ferrari team, Barrichello’s car was left jacked in the air for the formation lap.
A mechanic hurriedly removed the rear jack but left the front one in place.
Barrichello was pushed back to the pits before stepping out of the car, punching the air in anger as Ferrari’s hopes of a third successive one-two evaporated.
That left Montoya, who started on pole for the fifth race in a row, as the main challenger but he finished fourth behind Raikkonen’s team mate David Coulthard.
Barrichello’s nightmare was out of his control but others suffered from self-inflicted mistakes.
Schumacher, his brother Ralf and Coulthard were all dealt drive-through penalties for illegally crossing the white line dividing the pit lane exit from the track.
Ralf was fifth for Williams, ahead of Briton Jenson Button in sixth place for Renault, a day after the French team announced his departure at the end of the year.
Only 10 of a depleted field of 19 cars finished.
Montoya held off the world champion until his first pitstop at the end of lap 23, returning in fourth place.
After the McLarens of Raikkonen and Coulthard each led for a lap, Schumacher came in and resumed in the lead.
But his delight was shortlived as television replays showed that he had crossed the white line on exiting the pit lane.
Ferrari were advised that their number one was under investigation, a decision that had the Williams’ mechanics punching the air in jubilation, and he was then given a drive-through penalty.
Schumacher came in at the end of lap 35 and rejoined in third place, behind Montoya and Raikkonen.
The German was second behind the young Finn after his second pitstop and for 20 laps it seemed as if Raikkonen was going to hold him off.
Fate, as it so often has with Schumacher, decided otherwise and the German celebrated by waving to the crowd, arms aloft, before hugging his French team boss Jean Todt, who was as emotional as his driver.
Result:
1. Michael Schumacher (Germany) Ferrari one hour 32 minutes 09.837 seconds; 2. Kimi Raikkonen (Finland) McLaren 1:32.10.941; 3. David Coulthard (Britain) McLaren 1:32.41.812; 4. Juan Pablo Montoya (Colombia) Williams 1:32.50.512; 5. Ralf Schumacher (Germany) Williams 1:32.51.609; 6. Jenson Button (Britain) Renault one lap behind; 7. Nick Heidfeld (Germany) Sauber one lap; 8. Mark Webber (Australia) Minardi one lap; 9. Pedro de la Rosa (Spain) Jaguar two laps; 10. Alex Yoong (Malaysia) Minardi four laps; 11. Allan McNish (Britain) Toyota 65 laps completed.
NOT CLASSIFIED (DID NOT FINISH):
Eddie Irvine (Britain) Jaguar 52 laps completed; Jarno Trulli (Italy) Renault 49; Felipe Massa (Brazil) Sauber 48; Mika Salo (Finland) Toyota 48; Jacques Villeneuve (Canada) BAR 35; Olivier Panis (France) BAR 29; Takuma Sato (Japan) Jordan 23; Rubens Barrichello (Brazil) Ferrari 0.
FASTEST LAP:
David Coulthard, lap 62, 1:15.045 (203.925 kph)
Standings (Drivers’ championship)
1. Michael Schumacher (Germany) Ferrari 96 points; 2. Juan Pablo Montoya (Colombia) Williams 34; 3. Rubens Barrichello (Brazil) Ferrari 32; 4. Ralf Schumacher (Germany) Williams 32; 5. David Coulthard (Britain) McLaren 30; 6. Kimi Raikkonen (Finland) McLaren 17; 7. Jenson Button (Britain) Renault 11; 8. Nick Heidfeld (Germany) Sauber 6; 9. Giancarlo Fisichella (Italy) Jordan 6; 10. Jarno Trulli (Italy) Renault 4; 11. Felipe Massa (Brazil) Sauber 4; 12. Jacques Villeneuve (Canada) BAR 3; 13. Eddie Irvine (Britain) Jaguar 3; 14. Olivier Panis (France) BAR 2; 15. Mark Webber (Australia) Minardi 2; 16. Mika Salo (Finland) Toyota 2; 17. Heinz-Harald Frentzen (Germany) Arrows 2.—Reuters