Arthur Pic will join DAMS to compete in the 2012 Formula Renault 3.5 series, the team announced.
Pic, the younger brother of Marussia F1 driver Charles, raced in the championship with Tech 1 Racing during the 2011 season. He finished in 23rd position with 12 points scored.
The Frenchman had taken part in the postseason tests with Epic Racing, finishing in second and third over the two days.
DAMS, GP2 champion with Roman Grosjean this year, will return to FR3.5 next season.
"I'm very happy to have signed with DAMS for 2012, and I've got every confidence in our ability to achieve great results together," said Pic. "I'm going to work hard to fulfill the objectives we've set ourselves.
"The end-of-season tests on the Motorland Aragon circuit went off very well, and I stayed at the top end of the time sheets throughout the two sessions. I'm looking forward to driving the new car, which is more powerful and quicker than this year's model."
DAMS CEO Jean-Paul Driot added: "I'm delighted to welcome Arthur to the DAMS team for the 2012 FR 3.5 Series. We've had very strong links with the Pic family for a long time now (since Eric Bernard in F3000, who is Arthur's coach), but we never had the opportunity of working with Charles.
"We really hope to see Arthur joining his brother in F1 as soon as possible, and why not at the end of an excellent season with DAMS?"