Former European Formula 3 frontrunner Lucas Auer will join the DTM with Mercedes for the 2015 season.
The 20-year-old Austrian has finished fourth in the last two European F3 campaigns, using Mercedes power both times, and first tested the brand's DTM car at Jerez in December last year.
Auer is the second new signing Mercedes has announced this week, following confirmation that GT ace Maximilian Gotz will also make the step up to the DTM.
"Joining the DTM is an important step in my career," said Auer.
"I'm really proud to be part of the Mercedes family. Testing towards the end of last year in Jerez de la Frontera was a fantastic experience.
"I can't wait to get back in the car and continue preparations for my DTM debut.
"I would never have thought it a year ago. I realise that it won't be an easy task. The DTM is a top-class racing series with formidable opponents, but I'm willing to learn and ready to embark on this adventure."
Mercedes motorsport boss Toto Wolff added: "Lucas Auer has earned this opportunity with his performance in recent years.
"Our involvement in Formula 3 has enabled many drivers in the past to show that they are ready for the DTM, including Christian Vietoris and Pascal Wehrlein."
CONFIRMED 2015 DTM DRIVERS SO FAR
Mattias Ekstrom, Mike Rockenfeller, Timo Scheider, Miguel Molina, Edoardo Mortara, Adrien Tambay, Jamie Green, Nico Muller
Marco Wittmann, Martin Tomczyk, Maxime Martin, Bruno Spengler, Farfus, Timo Glock, Antonio Felix da Costa
Gary Paffett, Maximilian Gotz, Lucas Auer