Pye confirmed his departure from Walkinshaw Andretti United this week in a move that sees the 29-year-old leave the Clayton Holden squad after three seasons, that included a maiden race win and two Bathurst 1000 second place finishes.
“It's a massive step to expand Team 18 to a two car operation next year and I think Scott is the right person to get the job done for all our partners and crew at Team 18,” said Schwerkolt.
“Scott's ability on-track is on the way up in the prime of his career and I'm confident the best is yet to come.
“He will make a great teammate for Frosty and we're really excited to have him join the team in 2020 and beyond.”
Pye is looking forward to the new challenge that will see him pilot a Triple Eight built Holden ZB Commodore, for which a major sponsor has not yet been named, next season.
“I am really excited to be joining Team 18 in 2020, they're a young team but at the same time they have already had a taste of success, and it's refreshing to see what they have been able to achieve so far,” said Pye.
“I was immediately excited by the opportunity and I could see it would be a good fit for me.
“I am looking forward to working alongside Charlie, Mark and the rest of the team, to help them grow and move us to the front of the grid.
“Charlie's intentions are very clear, and he is extremely motivated, so it will be great to be part of the team working together for one goal.”
The announcement means Walkinshaw Andretti United will feature an all new two driver line-up for next year which is expected to be headed up by current Tickford Racing driver Chaz Mostert.
A number of names remain in the mix for the second seat including Todd Hazelwood, Bryce Fullwood and Richie Stanaway, who have both been linked the to the seat.
Outside of WAU, Tickford is yet to officially confirm its line up although it is thought Tekno Autosports' Jack Le Brocq will replace Mostert, with the team offering a new deal to Lee Holdsworth.
Matt Stone Racing is yet to reveal its 2020 driver plans but Speedcafe.com understands Garry Jacobson and Tim Slade have been linked to the seats.
Meanwhile, the Sydney based team is also yet to announce its second driver alongside James Courtney with Will Brown touted among the options.
Brad Jones Racing is another to confirm its line-up with Jack Smith expected to be part of a four car operation.