John McPhee will stay with Racing Team Germany for the 2016 season ahead of the outfit's switch to Peugeot machinery, it has been announced.

Coming to the end of the first of a two-year contract with the Saxoprint backed squad, McPhee had been in some doubt over the team's plans just over a month ago in Aragon.

However, with new management taking over and the introduction of Peugeot machinery, which is effectively a rebranded Mahindra, the 21-year old Scot believes he has "a terrific opportunity" to showcase his talents in what will be his fourth full season in the junior grand prix class.

"This year has been a tough one for me, my team-mate [Alexis] Masbou and SAXOPRINT-RTG as a whole," said McPhee. "But looking forwards to 2016, we have a fresh and exciting start, with new management and a new Peugeot-backed bike which provides us all with a terrific opportunity to show what we are made of."

The young Brit has endured a trying 2015, which saw him secure just four top ten finishes in the first half of the year, after a lack of testing hindered his progress on this year's Honda machinery.

A superbly judged tyre gamble resulted in his first grand prix podium in Indianapolis and a switch to the 2014 chassis, with which he fought for podium places in the final four races a year ago, has seen an overall improvement in pace.

The opportunity to work with Peugeot's technical team was another reason why McPhee decided to stay with the squad and he feels his experience will contribute to a successful campaign.

"I'm really looking forward to working closely with the Peugeot technical and marketing teams through the SAXOPRINT-RTG to develop the new bike. Hopefully my three years spent in the world championship and the experience I've amassed over that time will prove to be of benefit."