Honda has penned a new agreement to stay in IndyCar as engine supplier until the end of the 2017 season with an option to extend for a further three years.

The Japanese manufacturer has participated in the US single-seater series as an engine supplier since 2003 and its new deal means it will continue to act as the sole competition to Chevrolet.

The announcement confirms Honda will stay in IndyCar for the next two campaigns and also has the option of remaining in the series in 2018, 2019 and 2020 depending on the future direction of the sport.

"We're grateful for Honda's longstanding partnership with IndyCar the last 13 years," Mark Miles, head Hulman & Company, the parent of IndyCar and the Indianapolis Motor Speedway, said. "Racing is a part of Honda's DNA and its continued investment in IndyCar - technically on the competition side, but also through sponsoring of events - is instrumental to the success and continued growth of our sport."

Scott Dixon claimed the IndyCar title last year in his Chevrolet-powered Chip Ganassi Racing machine. Honda power claimed six wins in IndyCar in 2015.

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