Honda confirms new two-year deal for Pedrosa

Motorsport.com revealed on Sunday that the deal between the Spanish veteran and Honda, where he has competed since his premier class debut back in 2006, had been concluded following on from Maverick Vinales' decision to sign for Yamaha.

It means Pedrosa, who had been rumoured to be replacing Jorge Lorenzo at Yamaha, will remain with Honda until the end of the 2018 season, which will be his 13th consecutive campaign with the squad.

He will partner current teammate Marc Marquez, although the two-time champion has yet to officially clinch a new deal with Honda.

"I'm very happy to be able to announce my renewal with the Repsol Honda Team," said Pedrosa. "I'm very grateful to Honda for the trust they've shown in renewing with me for an additional two years.

"I think it's best for me to continue with the company I was with at my very first race. I'm happy that the negotiations have been quick, and now I can just focus on racing."

The next pieces in the puzzle

Pedrosa's contract renewal kicks off a key week for the silly season, one that could offer a good idea of what the MotoGP grid will look like in 2017.

The next announcement is expected in the Thursday press conference at Mugello from Vinales, who after intense negotiations with both Yamaha and Suzuki will become Valentino Rossi's teammate from next season.

This move closed the Yamaha door to Pedrosa, whose new Honda deal will earn him around 3m Euros per year, slightly more than what he had been making up until now.

After this, Honda will switch its focus to renewing its number one rider Marc Marquez, with whom it has been in talks for a while.

The market moves affected the Spaniard too and ended up tying his hands when he was making his demands, so both Marquez and his team know they have little option other than staying together.

2017 MotoGP grid so far: