Repsol Honda has officially confirmed that retiring champion Casey Stoner will be replaced by rookie Marc Marquez, with fellow Spaniard Dani Pedrosa retained to ride alongside him for the next two years.
Following Stoner's shock announcement at Le Mans, Honda initially made a bid for Jorge Lorenzo, but were unable to prevent the 2012 title leader from re-signing with Yamaha.
Keeping Pedrosa then became HRC's stated priority and terms were said to have been agreed even before Pedrosa won his first race of the season last Sunday in Germany.
"I'm very happy to be able to announce my renewal with the Repsol Honda Team for the next two years. It's been a very long relationship with Honda and I had a strong desire to stay here," said Pedrosa.
"The fight for the Championship this year is still open and the next two seasons will be very interesting for me. My whole career has been linked to Honda, since I entered into the World Championship in 125cc, then in 250cc and since 2006 in MotoGP.
"I'm perhaps one of the riders with the longest history with Honda, which makes me feel very proud. I want to thank HRC once again for their support; I'm sure that we have great things to do together".
Pedrosa's victory, combined with Stoner's last lap Sachsenring fall, means the Spaniard has moved into second in the world championship, 14 points from compatriot Lorenzo heading into this weekend's Mugello round.
Joining Pedrosa on the official RC213Vs next year will be former 125cc world champion and current Moto2 title leader Marquez.
Marquez's path straight into the factory team has been cleared by the recent removal of the 'Rookie Rule', which had forced all new riders to spend their first MotoGP season at a satellite team.