Alex Brundle, son of ex-F1 racer and current BBC F1 commentator Martin, will switch from Formula 2 to British Formula 3 this season.
The 19-year-old Brit will race an international class Dallara-Volkswagen for race-winning squad T-Sport.
Brundle finished 19th in the inaugural season of Jonathan Palmer's revamped Formula 2 championship in 2009.
He has made the switch to British F3 because of the greater testing mileage available and the opportunity to work with a team.
"I am very motivated by the opportunity to race in British F3," said Alex. "I love the car and this will be the first time in my motorsport career I have had the benefit of a team around me.
"I am going to work hard to use that new-found support to turn in some strong results for T-Sport."
T-Sport took two wins in British F3 with Wayne Boyd and Adriano Buzaid last season. Brundle is the team's first international class signing for 2010.
"We're delighted to have signed Alex," said team boss Russell Eacott. "Having met him we have seen his enthusiasm and desire to race. Formula 3 is all about learning and Alex wants to be in an environment where he can learn to have a one-to-one relationship with his race engineer and really attack the technical challenges of F3."
Brundle has made the move with help from engine supplier Volkswagen, which returned to British F3 for the first time since the early '90s last season and took the title with Red Bull F1 reserve driver Daniel Ricciardo.
"We are delighted to welcome Alex Brundle into the Volkswagen family," said VW motorsport director Kris Nissen.
"In Formula 3 he faces an important learning year and we look forward to making the next step in his young career together."
Martin Brundle, who ran the late Ayrton Senna close for the 1983 British F3 title, added: "Generations of drivers have benefited from competing in British F3, including myself with Volkswagen power."
"With 45 days on track and 30 races Alex will learn a great deal as he experiences a team environment for the first time.
"I like the attitude and approach of the T-Sport team and I'm confident about Alex's rookie F3 season."