Jolyon Palmer will partner Pastor Maldonado at the Lotus Formula 1 team next season, the Enstone-based team announced on Friday.
The Briton, the GP2 champion in 2014, joined the team as its reserve driver for this year, running in Friday practice in several grands prix.
Palmer will take the seat left vacant by Romain Grosjean, who will race with the Haas F1 team next season.
The 24-year-old Briton, the son of former F1 driver Jonathan, made his debut at the wheel of F1 machinery last year, when he tested for the Force India team.
He secured the GP2 crown in 2014 with DAMS, beating this year's champion and McLaren protege Stoffel Vandoorne to the title.
"It feels pretty unbelievable! It's been such a long journey and I'm so glad to have been confirmed as a race driver with the team next year," Palmer said.
"A lot of hard work has gone into preparing for this to happen and into proving what I'm capable of delivering.
"I'm very grateful to everyone who has so far helped me at the team; I'm now looking forward to 2016 and to build on the experience that I already have."
Team boss Gerard Lopez added: "We are very pleased to announce that exciting British racing talent Jolyon Palmer is promoted to a race seat with the team for next season.
"We've seen Jolyon's hard work and talent this season in the way he's approached his third driver role and he is a really popular choice for the team.
"As well as having a great future ahead of him behind the wheel, Jolyon is an intelligent and highly marketable asset to the team. He deserves this opportunity, and everyone at Enstone is excited to see what he can achieve next year."