Ed Carpenter will drive for Sarah Fisher Racing during the 2011 IndyCar season, with Fisher herself stepping out of the car to focus on her role as team owner.
Fisher said she is confident the decision to quit driving will help her team grow.
"This change in my career is a direction I have been thinking about very hard," said Fisher in a statement on Monday.
"The timing is perfect for the strategy of SFR in its future endeavours. To have the support of all our partners in this direction is incredible.
"I am glad to have the support of our partners, including Dollar General, who have led us to where we are today. I know this team has what it takes to perform and I am hoping with the decision to put Ed in the seat, that we can do just that.
"By stepping out of the seat, I will be able to spend more time growing this team in the right directions both on and off track."
Carpenter competed part-time in the championship this year, taking part in six races on his way to 28th place in the standings.
He took a sensational pole position - his maiden in the series - in Kentucky, driving for Panther Racing.
"I am so honoured to have to opportunity to come drive for SFR and Dollar General," said Carpenter. "I have been friends with Sarah and [her husband and team partner] Andy [O'Gara] for a long time, and am really looking forward to working with their team. Sarah and I come from such similar backgrounds; I know that it will be a joy to work with her team.
"Sarah has had a great career and has done an amazing job growing SFR each year. I am confident that together we can continue to improve the results not only on the track, but off of the track as well."