Team Lotus will develop its Formula One cars in one of Williams' two wind tunnels at the famous British team's Grove headquarters.
Williams is already supplying the rear end and gearbox to another of F1's new 2010 entrants, Hispania.
The deal announced on Monday will see Team Lotus expand its aerodynamics programme beyond the Aerolab facility in Italy, while the team develops its own tunnel at Hingham.
"When that facility is operational all activity will be transferred to the team's own site," said Team Lotus in a statement.
Team boss Tony Fernandes' link with Williams was already strong following his former sponsorship of the Oxfordshire based team through his airline AirAsia.
"I owe a great deal of thanks to Frank Williams, Patrick Head and Adam Parr as they were the first people I ever worked with in Formula One," he confirmed.
Meanwhile, it emerged in Canada over the weekend that Team Lotus has inked a new sponsorship deal with the famous computer chip maker Intel.