Lewis Williamson will graduate to next year's Formula Renault 3.5 championship with Arden, for which he raced in GP3 in 2011.
Next season will also involve Williamson, the 2010 McLaren AUTOSPORT BRDC Award winner, racing as part of the Red Bull Junior Team programme.
The 22-year-old Briton contested four races in FR3.5 this year for ISR, while he claimed one victory and three podiums in GP3.
Speaking at the Scottish Motor Racing Club's annual dinner, Williamson said he was pleased to stay with the team he has raced with this season as he steps up to FR3.5.
"It's a pretty cool opportunity to learn and great to stay with the team which helped me to learn all the circuits in 2011," he said.
"I hope I can just get better, more consistent and run at the front."
Williamson is also one of 18 drivers chosen for the 2012 FIA Institute Young Driver Excellence Academy.