Catsburg made his debut in the WTCC midway through the 2015 season with Lada and claimed his first victory for the Russian squad at Moscow Raceway last year, finishing seventh overall in the 2016 points.
The factory BMW GT driver has now extended his stay in the WTCC with a drive in one of Volvo's Polestar-run S60s for the 2017 season, and will join Thed Bjork - who claimed the manufacturer's first win in the championship in China last year - and Nestor Girolami at the squad.
"We'd been in contact during the  season," Catsburg told Autosport.
"We were racing in the same championship so you run into each other, but informally more or less.
"In the end we considered it as a possibility when Lada announced it would quit the WTCC; initially the intention was to continue with Lada, [but] when that didn't continue we approached Volvo to find out about the possibilities to compete for them.
"What matters is the stability when you turn into the corner, and the power of the engine is good. In addition, it seems that the car will be easy to set up; it feels great.
"The team is very professional and fun to work with too. I know they'll do everything they can to become world champion.
"I 100% I want to fight for the championship, that's the target."
Argentinian Girolami made a one-off appearance with Volvo at Motegi last year, scoring a best finish of fifth, and has previous experience in the championship having driven a Nika Racing Honda Civic in 2015.
"I am extremely grateful to get this opportunity with Polestar," said Girolami.
"My first races with them last year were really promising and I felt right at home with the team.
"I hope, together with everyone in the team and Thed and Nick, to take the next step forwards in the result lists this year."
CONFIRMED 2017 WTCC LINE-UP SO FAR
Honda: Tiago Monteiro, Norbert Michelisz, Ryo Michigami Volvo: Thed Bjork, Nick Catsburg, Nestor Girolami Sebastien Loeb Racing Citroen: Tom Chilton, John Filippi Munnich Motorsport Citroen: Rob Huff Zengo Motorsport Honda: Aurelien Panis
As the future of sportscar racing in Europe has witnessed a tantalizing drip-drip of Le Mans Hypercars from Toyota, Glickenhaus, Peugeot, Ferrari and Vanwall, across the pond in America the LMDh era arrived with a big bang at Daytona last week as Acura, BMW, Cadillac and Porsche all hit the track together for the first time.
Volvo gave the World Touring Car Championship a major boost when it announced it would enter the series, but its ambitions don't stop there. JACK COZENS examines its programme, the S60 and what its arrival means for the WTCC
The 2012 World Touring Car champion says he never had the money to race cars. Yet 2015 is his 11th season in the WTCC. He talks STUART CODLING through his journey from motorsport fan to paid professional - for little more than £100,000