The Peugeot brand will enter the Moto3 World Championship next season, joining forces with Racing Team Germany.
RTG have also confirmed that the experienced Alexis Masbou, who will be 28 years-old at the start of next season, is to remain with the team.
The destination of current team-mate John McPhee is still uncertain with the team's second rider to be announced at the Valencia GP weekend.
Another change sees Terrell Thien take over as team manager with immediate effect, Dirk Heidolf will instead take care of the Peugeot youth team to run in the CEV.
Peugeot have been looking to enter the motorcycle world championship for some time, making their initial move by allowing Indian Manufacturer Mahindra to purchase a controlling 51% steak in the motorcycle arm of the company.
Mahindra have raced in 125GP/Moto3 since 2011 and next year's Peugeots seem set to be re-badged Mahindras, emulating the KTM-Husqvarna scenario.
The Mahindra-Peugeot partnership has already found success with Marco Bezzecchi winning seven races to secure the Italian Moto3 title and team-mate Fabio Spiranelli fourth overall. Bezecchi has had two wild-card rides in Moto3 this season.
Mahindra, which formed a new partnership with the Aspar team for 2015, have had limited success this year - claiming just one podium, by Francesco Bagnaia, at Le Mans.