Ian Hutchinson will lead the charge for Tyco BMW at the international road races in 2017.
Hutchinson will also contest the British Superstock 1000 Championship next season on the S1000RR after an impressive campaign in 2016.
The Yorkshire rider extended his tally of Isle of Man TT wins to 14 this year with a hat-trick, winning the Superstock race and both Supersport events.
Hutchinson also set a new outright lap record at more than 134mph at the Ulster Grand Prix at Dundrod, where he won four races in August.
“I'm glad to have finally sorted a deal to stay with Tyco BMW for a second season. Looking back we had a very good run in 2016 with wins at all the International Road Races,” Hutchinson said.
“Having now worked together for a season, we know where we need to improve with the obvious goal, to go on now and challenge for the Superbike wins at all of the big three internationals.
“The BMW S1000RR still has so much potential in Superbike trim on the roads and with another season of British Superstock planned, the aim there will be to go one step better and win the championship next season.”
Team owner Hector Neill added: “Hutchy did a great job for us this season and whether it was in British championship or the roads, he was always in contentions for wins and podiums and provided both our sponsors and fans with a lot of entertainment.
“His international hat-trick in the Superstock class and his terrific season in British Superstock proved how well he got on with the Tyco BMW, and to go on and take the world's fastest track lap record at Dundrod was the icing on the cake.
“The goal going forward is to build on that success and I've never hidden the fact that the Senior TT trophy is the one we really want to win in 2017. It's the blue-riband road race on the season's calendar, and along with Hutchy and our dedicated team we will be giving it our very best shot.”