Lewis Hamilton is facing the daunting prospect of a three-way drive-off for the Formula One World Championship after his hopes of securing the title were dashed in a dramatic Chinese Grand Prix yesterday.

Hamilton faces having to finish as high as second in the Brazilian Grand Prix at Interlagos in two weeks if he is to fulfil his dream of becoming the first rookie to win the championship.

Against him on one of the sport’s more difficult circuits, to which Hamilton has never been before, will be Fernando Alonso, his arch-rival and McLaren Mercedes teammate who is now just four points behind him after finishing second in China, and Kimi Raikkonen, of Ferrari, who won yesterday and is seven points behind the Briton.

Hamilton’s race in Shanghai started well on a day when rain and the critical decision of when to switch from wet tyres to dry proved the key variable, a decision that Hamilton and McLaren got badly wrong.

After starting from pole position, the Briton led comfortably during the first stint in wet conditions. But in the second stint with the track drying, Hamilton seemed to push too hard in trying to win a race he did not need to win and found himself with worn-out rear tyres, his pace dropping dramatically.

The World Championship leader, who could have clinched the title with second place, was suddenly going slower and slower as his MP4-22 slid around on damaged rubber. First Raikkonen got past him, then Hamilton tried to get into the pits - he said later that it was like trying to “drive on ice” – but he ran wide and ended up in the gravel with his rear tyres spinning.

“When I got out of the car I was obviously gutted for both myself and the team,” Hamilton said. “I haven’t made a mistake all year and you cannot go through life without making mistakes, but I am over it now. I will now focus on attacking in Brazil where I will do everything I can to bounce back.”

Among those watching in Britain was Damon Hill with a party of Hamilton fans at Silverstone hoping to see him secure the title. The last British driver to win the World Championship was not despondent after studying the way Hamilton handled his setback, however. “My instant reaction to what happened was disbelief, but Lewis bounced back instantly by saying that he is still fighting, he’s still leading the championship,” Hill said. “His conduct as a sportsman is absolutely amazing. He’s come in as a rookie and is out there beating the best drivers in the world.”

Hamilton’s misfortune proved a godsend for Alonso, who up until his teammate’s retirement was beaten and running well off Hamilton’s pace. The Spaniard could yet win his third championship in a row. Disliked by his team for petulant and unsporting behaviour, it will be a peculiar day for McLaren if he does pull it off.

Alonso again suggested yesterday that his tyre pressures had been altered during qualifying by his own mechanics to slow him down, something that almost guarantees that the Spaniard will not be with McLaren next season. In a momentary departure from McLaren’s prepared script, Ron Dennis, the team principal, remarked revealingly after the race: “The problem was rain and his [Hamilton’s] tyres were in the worst condition. But we weren’t at all fazed about Kimi [Raikkonen]. We weren’t racing Kimi, we were basically racing Fernando. Kimi winning and Lewis coming second was adequate. It just didn’t quite work out that way.”

All to play for

Ways that Lewis Hamilton can win and lose the title at the Brazilian Grand Prix on October 21

Present position Hamilton 107pt; Fernando Alonso 103; Kimi Raikkonen 100 (all three drivers can still win the title at Interlagos).

— If Hamilton finishes second or first, he wins the title

— If Alonso wins the race in Brazil, Hamilton must be second to take the title

— If Raikkonen wins, Hamilton must be fourth to claim the title

— If Hamilton does not finish in Brazil and Raikkonen wins, Alonso must be second

— If neither Hamilton nor Alonso finishes, Raikkonen wins the title if he finishes second