Reigning 250cc world champion Marco Simoncelli will join the Honda Gresini team in MotoGP next season.
The 22-year-old, who has seven 250cc victories to his name, will race for the Italian squad in 2010 after completing this year's championship in the lower category.
"Marco has that determination and character that we want from a rider as part of his DNA and we are sure we can look ahead to exciting times with him," said team boss Fausto Gresini.
"Marco has shown over the past couple of years that he has the ability to be a major force in the premier class, as well as being a great communicator. We have established a good feeling with him already and that facilitated negotiations over a contract that we have signed for 2010.
"Also, Honda rates Simoncelli highly and believes he is a rider with great potential for the future, so Honda is very pleased that we are welcoming Simoncelli next season."
The team also confirmed the extension of its agreement with title sponsors San Carlo.
"We're extremely happy to be able to make this important announcement: renewing our agreement with San Carlo, who have shown great belief in us and continue to support our targets for next year, and the agreement with Marco Simoncelli to race with us in MotoGP," Gresini added.