The Sky VR46 team has signed Stefano Manzi to race alongside Francesco Bagnaia in its new Moto2 team.
Manzi made little impact during a season with San Carlo Team Italia, but impressed during wild-card appearances for Mahindra this season, including a fourth place at Silverstone.
"I am very happy to start this adventure in Moto2 with the Sky Racing Team VR46," Manzi said.
"Thanks to Mahindra I was able to show my potential. Just a month ago, I have joined the VR46 Riders Academy and now I have the opportunity to continue my growth path in one of the top teams of the Championship.
"I'm really pleased to race in a new category, which probably is better suited on my style. I expect a lot of work to do, but I can not wait to get on track with my new bike".
Team manager Pablo Nieto added: "I am delighted to confirm that Stefano Manzi will be with us in 2017 and, at the same time, to announce our partnership with Kalex in Moto2.
"In several occasions this year, Stefano showed all his talent and today we are proud to say that we will support his growth path with all our efforts. He is a young rider, very promising and with a great talent.
"It will be a completely new category for him, but that best adapts to his physical characteristics. Kalex - that over the years, created a very competitive bike - will be together with us with its professionalism and commitment."
In addition to the new Moto2 project, VR46 will continue to run Nicolò Bulega and Andrea Migno in the Moto3 class.