Holdsworth's recommitment to the team comes despite it having yet to lock away a new agreement with AMG and Mercedes-Benz Australia, or a major commercial sponsor.
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Scoring Erebus' first win at Winton in April, Holdsworth is adamant that the team has the potential to be a consistent contender in future.
“Knowing that you've got the right people around you is the most importing thing in any business or sport and I certainly know I've got that at Erebus,'' he said in a statement announcing the ‘multi-year' deal.
“I've worked with the team for a long time and we've been through some tough times but now we've seen the light.
“Seeing what our team can overcome and seeing the attitude of the people there throughout those times proves to me that we've got the right bunch of people to be a championship team.
“We're still looking for consistency but I'm confident we're going to find that. I'm looking at the big picture, not race-by-race, and I've got complete confidence in the direction the team is heading.”
After a six-year stint at Garry Rogers Motorsport, Holdsworth joined the now Erebus squad for its final season as Stone Brothers Racing in 2012.
The unforeseen ownership change and corresponding marque switch has tested the Queenslander's resolve, with last year yielding a finish of just 20th in the drivers' standings.
He currently 17th in the 2014 championship, three places behind team-mate Davison, who Holdsworth says he has enjoyed working alongside.
“Continuity in a team is important and with this being Will's first year, that relationship will only get stronger,” he said.
“Will and I have a very good working relationship – we both know what we want out of the car and are working towards the same thing so it's great to have a teammate on the same development path as I am.
“Knowing there's going to be continuity here for at least the next couple of years with Will and I pushing each other can only make the team stronger.''
Erebus CEO Ryan Maddison had made no secret of the squad's desire to keep Holdsworth and says he's pleased to have both drivers locked away ahead of the new year.
“Successful teams in this category are built on the foundation of consistency with drivers, key staff and team members so it's extremely pleasing to have both of our drivers committing to the team long-term,'' said Maddison.
“It was always going to take time to become familiar with the equipment last year but Lee has shown how much he has learned from that experience with his results on track this year.
“We're really happy knowing that we have got two great drivers taking this team forward into the future.''