Marcus Ericsson will remain at Sauber for the 2017 Formula 1 season.
The confirmation will see the Swede enter into a third year with the Swiss operation having joined in 2015 after making his F1 debut with Caterham the previous year.
The 26-year-old has failed to score a point this season in what has been a difficult campaign for the cash-strapped team.
However, after announcing new investors in July, Ericsson, who scored nine points for Sauber in 2015, is confident results will improve.
“I have spent two years with Sauber now, and I really feel at home,” said Ericsson.
“A big thanks to everyone within the team for trusting in me again.
“From a personal point of view, I have developed a lot as a driver during my time at Sauber.
“We have had ups and downs, but we always stick together and work as hard as we can.
“Since the new ownership, there has been a positive push in the team, so it will also be exciting to go into this new era.
“Many motorsport experts are becoming part of Sauber, which is a good sign for the future.
“For 2017 my aim is to build on my performance from the second half of this season, and to continue working hard with the team.
“I cannot wait for the 2017 season, so that we can make our way up to the midfield with the objective to score points on a regular basis.”
Sauber says it will reveal the identity of Ericsson’s team-mate in due course.
Talks to renew Brazilian Felipe Nasr’s contract have been delayed by sponsorship complications.
Sauber boss Monisha Kaltenborn has been impressed by Ericsson’s development since he joined the team and expects him to deliver results next season.
“During the current season Marcus has again showed he is willing to go that extra mile in order to make progress,” said Kaltenborn.
“He went through very difficult times with us, but managed those very well.
“In the last two years, he has made significant steps in regards to his personal development, proving his skills on as well as off track, especially when circumstances are not easy.
“He is not only a good driver, but also an important team player who understands how to work with the team and how to motivate everyone with his positive attitude.
“Formula 1 goes into a new era in 2017, and I am confident that we can count on Marcus to bring the team back into the competition.”