Mick Schumacher will move to Prema Powerteam for another season in Formula 4, the squad announced on Friday.
The 16-year-old, the son of seven-time F1 world champion Michael Schumacher, had already tested for the team at Monza at the end of last year.
It will be Schumacher's second season in Formula 4, having competed with Van Amersfoort Racing last season, where he took one race win.
Prema said, however, that it was yet to decide if Schumacher will race in the German or Italian F4 championship.
"I am proud to welcome Mick Schumacher to our team," said team boss Angelo Rosin. "As a driver, he is showcasing a constantly-improving potential and he already has a one-year experience in Formula 4.
"At his maiden season in single seaters, he quickly showed he has all what it takes to aim for the top. We always kept an eye on him because he was a perfect prospect for Prema.
"He is quick, smart, determined and likes to work hard with the team in the quest for the highest possible level of performance."
Schumacher will partner newcomers Juan Manuel Correa and Juri Vips at Prema.
"Prema Powerteam for me is the perfect next step on my way to go for the best performance and to become a complete driver," said Schumacher.
"The team is very experienced and open, and everybody is really good in working closely with us drivers - plus there is Angelo who is behind every detail.
"It already is a lot of fun to work with the team, and I look forward to this challenge and to sharing a cool experience together. I am very proud to be a part of Prema."
Although Prema enjoys close ties with the Ferrari Driver Academy, Schumacher's management has restated that the German will not be a member of the Scuderia's junior programme this year.