Dalton Kellett will contest the full IndyCar schedule with A.J. Foyt Racing next season, after completing a partial campaign with the team in 2020.
The 27-year-old Indy Lights graduate made eight appearances in Foyt's #14 entry, which he shared with Sebastien Bourdais and Tony Kanaan.
Kellett scored six podium finishes in his four years of Indy Lights but suffered with testing being non-existent during the COVID-impacted season, which restricted his on-track time to race weekends.
The Canadian was never able to finish higher than 20th as he grappled with an unfamiliar car. He also entered the Indianapolis 500 in a third Foyt entry, but crashed out on lap 82 and was classified 31st.
He will partner Bourdais full-time next season, replacing Charlie Kimball in the #4 machine.
Team president Larry Foyt said: "We are very happy to have Dalton back with the team and more importantly that he will be driving full-time.
"With the limited track time in 2020, it was a tough year to be a rookie, but he jumped in with a great attitude and adjusted to the Indycar quite well.
"He was getting quicker with each event and had a great test at Barber [Motorsports Park] recently.
"I think Dalton will truly benefit from having four-time champion Sebastien Bourdais there full-time. I'm really looking forward to seeing how our team progresses in 2021."
The team's first scheduled test of the new year will be held in January at Sebring.
Kellett added: "I couldn't be more excited to be back with AJ Foyt Racing for the 2021 season.
"Securing a full-time ride is a big boost heading into my sophomore year in IndyCar.
"Despite the challenges presented by Covid-19 in 2020, A.J., Larry, and the Foyt team continued to develop their car and elevate the program, while standing by their employees and partners.
"That's the kind of team I'm proud to both race for and be a part of.
"Being paired with Sebastien will be a great opportunity to continue to learn from one of the most experienced veterans in the field.
"I can't wait to get back on the track for off-season testing and back behind the wheel in 2021."