Jolyon Palmer will continue to drive for Renault for the 2017 season.
The 25-year-old will partner the recently-recruited Nico Hulkenberg at the French team as they build up to competitiveness following their return to F1 as a factory entry this year.
Palmer said he was “over the moon” to be staying with Renault.
The British driver joined the team’s predecessor, Lotus, as third driver in 2015 before graduating to race driver with Renault for the 2016 season.
It was also revealed on Wednesday that Dane Kevin Magnussen would be leaving Renault to move to the US-based Haas team for 2017.
Renault returned to Formula 1 as a constructor this season after taking over the Lotus team.