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The deal means it will likely be an unchanged line-up for Penske in IndyCar next year, although the exact terms of Will Power’s and Scott McLaughlin’s current deals have not been revealed publicly.
The team’s announcement of the new, “multi-year agreement” comes in the days after Newgarden won the Indianapolis 500 for a second time in as many years, adding to his two championship titles.
“Josef Newgarden is a true winner, and we are excited that he will continue as a part of Team Penske for years to come,” said team owner Roger Penske.
“What he did Sunday in the Indianapolis 500 shows how Josef consistently delivers for our team and our partners on the track, and he is just as impressive off the track as well.
“We are proud to have Josef continue with our organisation as his skill and passion embody what it means to be a Team Penske driver.”
The Tennessean thus far has 27 IndyCar race wins for Penske, on top of three for Ed Carpenter Racing/CFH Racing, and this year also became an outright 24 Hours of Daytona winner in its Penske 963 programme.
“Driving for Roger Penske and this iconic team is a dream that I never thought I would realise,” he said.
“I’m thankful for the opportunities that I’ve been given during my time at Team Penske.
“I have a great amount of respect for the individuals that comprise our group, including the partners who support us.
“Our time together has been filled with hard work, teamwork and dedication; and I’m so excited that we will continue on for many more years to come.
“I’m sure that we can achieve much more in the future. I still believe we haven’t reached our full potential together just yet.”
Newgarden’s contract comes after the controversy of the team’s push-to-pass breach, with he and McLaughlin disqualified from Race 1 of the 2024 season.
Car #2 is back with Race Engineer Luke Mason and Strategist Tim Cindric, also Team Penske’s President, after they were among four suspended by the squad for the Month of May following an investigation into the scandal.