Fernando Alonso's deal with Renault for 2008 is set to be revealed imminently – and it may not be for just one year.

According to Spanish reports, the double Formula 1 World Champion will return to the squad with whom he claimed both his drivers' titles – and, what's more, it will make him the highest-earner in the sport for the first time.

“Renault has won the race,” declared Spanish daily newspaper El Mundo. “Alonso will return to the team where he amassed his glory.”

Despite also having been linked to Red Bull Racing, Honda and Toyota, it would seem the 26-year-old and his former team have finally been able to agree terms. Until now, the major sticking point had always been the Spaniard's wish for a one-year contract, and the Regie's determination to tie him down to a multi-year deal, something Alonso had been loathe to do given his apparent wish to move to Ferrari in 2009.

However, the final agreement is believed to be for two years, to include minimal sponsor commitments, an 'exit' clause and clear number one status. The deal is reputed to be worth $50m a season, making Alonso higher paid than even Ferrari's recently-crowned world champion Kimi Raikkonen.

Current Renault test-driver Nelson Piquet Jnr is set to be promoted to a racing role alongside Alonso, with fellow Spanish newspaper El Pais stating McLaren boss Ron Dennis will await the French outfit's final decision before deciding who shall partner Lewis Hamilton at Woking next year. Heikki Kovalainen was believed to be the favourite to fill the seat, but recent rumours suggest Dennis is now leaning more towards McLaren tester Pedro de la Rosa.

Alonso split with McLaren two years prior to the termination of his contract at the beginning of last month, following an acrimonious season blighted by public rows with team-mate Hamilton and Dennis.