Adrian Newey has signed a new contract with Red Bull, but he will step away from his day-to-day involvement with the Formula 1 team to work on other projects.
Newey's future has been the subject of intense speculation over recent weeks, after Ferrari sounded him out about a future deal.
But with Newey eager to remain at Red Bull, he has now committed to a fresh multi-year contract that will keep him involved with the energy drinks company.
However, his responsibilities will change, and he will become an advisor and mentor to the F1 outfit rather than be totally focused on it.
A clarification on what Newey will focus on will be announced later this year.
Team principal Christian Horner said ahead of the Canadian Grand Prix that he was delighted his company was keeping hold of Newey.
"It is great that we have come to an agreement that will see him continue to advise and mentor the team going forward," he said. "There are some exciting new projects that will be announced in due course.
"He is still very much involved [with the F1 team]. We will have a further clarification later in the summer."
After helping turn Red Bull into a multiple title-winning team, Newey is known to have grown frustrated by the way that F1's ever-tighter regulations have limited his creativity.
Horner added: "I think Adrian has reached a stage where he is keen to take on some additional challenges as well. It is great news for the team and Red Bull that we have a multi-year agreement and it is exciting also for Adrian.
"He has always enjoyed the environment of Red Bull and he enjoys working with the people, so it was a pretty straightforward discussion in the end."
NO BLOW TO TEAM
Although Newey's future move away from his F1 role could be viewed as a blow to the team, Horner is adamant that the outfit will not suffer.
"We have tremendous strength in depth and it is not like he will not be about any more," he said.
"It is great for the team and for Red Bull and exciting for Adrian as well.
"You only have to look at him to see if he is fully committed or not. We are working very hard to close the gap down to Mercedes as that is his priority."