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Race winner Aron Canet is the first rider announced for the team, which will run under the Max Racing banner in partnership with Schedl GP.
Schedl has long held a presence in the entry level class of MotoGP and took Philipp Oettl to victory in this year's Jerez round.
Biaggi established his team at the end of 2016, and it has so far competed in Spanish and Italian Moto3.
He has retained a relationship with Aprilia after his WSBK successes with the brand, and also became an ambassador for the Venturi Formula E team earlier this year.
Biaggi was a four-time world champion at 250cc level in the 1990s and a three-time 500cc/MotoGP runner-up and 13-time race-winner.
But he could not win a 500cc/MotoGP title in a career best remembered for his fractious rivalry with Valentino Rossi, and left the series after 2005 before resuming racing in WSBK.
Canet will join the Max team following a split with the Estrella Galicia squad with which he scored three wins last year and finished third in the standings behind 2019 Suzuki MotoGP signing Joan Mir and the currently-banned Romano Fenati.
He replaces Oettl, who will graduate to Moto2 next year with Tech3.
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