Four-time Champ Car World Series champion Sebastien Bourdais will race for KVSH Racing in 2014, the team announced on Wednesday.

"I am extremely pleased to announce that Sebastien Bourdais will be driving for KVSH Racing for the next two years," said team co-owner Kevin Kalkhoven in a statement. "Sebastien is a proven champion and we look forward to working with him to produce more championships."

After returning to US open wheel racing in 2011 with Dale Coyne, Bourdais has been competing with Jay Penske's Dragon Racing squad for the last two seasons but now moves to KVSH for 2014 and 2015 in place of Indy 500 winner Tony Kanaan.

The team also announced a change to its name - from KV Racing - to reflect the addition of James 'Sulli' Sullivan as a team co-owner alongside Kalkhoven and Jimmy Vasser.

"I am very pleased and proud to say that we have Sebastien Bourdais driving a KVSH Racing car," said Vasser. "I have raced against him and can say without a doubt that he is an exceptional driver and a true champion. We look forward to winning a lot of races with him."

Bourdais thanked the team principals for the opportunity he was taking up. "The fact that I have an agreement with KVSH Racing so early, and that I have a two-year contract, shows the team's commitment to their new era in the IndyCar Series," he said. "I am looking forward to meeting the crew and getting started with testing as soon as possible.

"I also want to thank Dragon Racing for their support over the last two seasons," he added. "I wish them the best of luck in the future."

"This is something we have been working towards for many months" added Sullivan. "I am ecstatic to sign Sebastien, a driver I expect will get it done for us throughout the season. This is the next step in building KVSH Racing into a team that competes for wins and championships every year. To that end you can expect further announcements in the near future."

Of his own new status as a full team co-owner going forward, Sullivan added: "I want to thank Kevin Kalkhoven and Jimmy Vasser for their hard work. The three of us are committed to taking the team to the next level."

The team is yet to decide whether to extend its current one-year contract to retain the services of Swiss driver Simona de Silvestro in the team's second car to work alongside Bourdais in 2014, after she secured her maiden podium finish in the IZOD IndyCar Series earlier this month in the first of the two doubleheader races at Houston.

Multiple reports suggested that James Hinchcliffe had been hoping to take Kanaan's seat at the team, after widespread speculation that internet services company GoDaddy.com is to scale back its involvement in IndyCar after this season and will no longer act as primary sponsor of the #27 Andretti Autosport car.

However it now appears that Andretti is close to securing replacement financing that will allow it to continue running Hinchcliffe as part of the squad alongside Ryan Hunter-Reay and Marco Andretti in 2014, and that the personable 26-year-old Canadian will elect to stay with the team with which he clinched his first three series wins this year at St Petersburg, Sao Paulo and Iowa.

Dragon to compete in Formula E

Sebastien Bourdais' departure leaves Dragon Racing in a quandary for next season, with Jay Penske already having said the team's plans for 2014 were "undefined." The team may opt to leave the IndyCar Series altogether, after recently announcing that it had signed a contract to compete in the inaugural season of the Formula E championship next year.

"It's an honour for Dragon Racing to have been selected as one of the founding teams in Formula E," said Penske. "Formula E symbolizes a vision for the future of motorsports and the automotive industry, while directly appealing to a new generation of global race fans.

"Formula E offers a tremendous opportunity for our many technology and media partners, and we look forward to its inevitable growth and ascendancy over the next decade."

The team's Facebook page carried a photograph of Penske signing contracts with championship CEO Alejandro Agag in California and another showing a mockup of the team's livery for the all-electric series chassis.

The signing makes Dragon the second IndyCar team to join Formula E after Andretti Autosport. Drayson Racing will also field a team, as will China Racing which was originally established by the Ministry of Sports of China to carry the nation's colours in the short-lived A1GP World Cup of Motorsport.