Guillaume Moreau will race for KTR for the second year running in World Series by Renault next season.
The 24-year-old said that he had been talking with several teams about next year, but he is happy to remain with Kurt Mollekens' squad.
"KTR was always my number one choice," he said. "I like the ambience that reigns in the squad, and I'm very happy that we've reached a new agreement.
"I've always been quick with KTR and we've never been far behind the frontrunners. It's clear the 2008 season will be crucial for my career, as it's my second year in the formula and I have no choice but to go for the title."
The French driver, who took his maiden victory in the category at Magny-Cours in September, believes that by keeping their relationship going, he and the team will have an advantage with the new car that will race in 2008.
"We'll have an advantage over our rivals as we know each other very well and we won't need any time to adapt in the driver/engineer relationship," he said.
"It's up to us to take full advantage of this in every practice session, and push the envelope further in terms of set-up to be a step ahead of our rivals."