Mick Schumacher, the son of seven-time Formula 1 world champion Michael Schumacher, will remain in Formula 4 for a second season.
Schumacher, who will be 17 next month, will race for Prema Powerteam in a deal that has been expected since he was spotted testing with the Italian squad at Monza last November.
He started his car-racing career last year with Van Amersfoort Racing, finishing 10th in the German F4 standings, with one victory in the reversed-grid race at the opening round at Oschersleben.
He also recently contested the final round of the MRF Challenge in India, taking a best finish of second at the Chennai track.
Prema, which carried Lance Stroll and Ralf Aron respectively to the 2014 and '15 Italian F4 titles, now has three drivers on board its junior squad for this year.
Two of the world's leading karters - Estonian Juri Vips and American-Ecuadorean Juan Manuel Correa - will join Schumacher.
Prema founder Angelo Rosin said: "I am proud to welcome Mick Schumacher to our team. As a driver, he is showcasing a constantly improving potential and he already has one year of experience in Formula 4.
"In his maiden season in single-seaters, he quickly showed he has all it takes to aim for the top.
"We always kept an eye on him because he was a perfect prospect for Prema - he is quick, smart, determined and likes to work hard with the team in the quest for the highest possible level of performance."
Schumacher added: "Prema Powerteam for me is the perfect next step on my way to go for the best performance and to become a complete driver.
"The team is very experienced and open, and everybody is really good in working closely with us drivers - plus there is Angelo who is behind every detail.
"It already is a lot of fun to work with the team, and I look forward to this challenge and to sharing a cool experience together. I am very proud to be a part of Prema."
Despite announcing that Vips and Correa would major on the German F4 series in 2016, Prema says it is now undecided as to whether Germany or Italy will form its main focus.
If Prema competes in Germany, among its drivers' opposition will be 15-year-old Sophia Floersch, who has joined Motopark after starring in a part-season in the British Touring Car Championship-supporting Ginetta Junior Championship last year.