Sauber will continue with Ferrari engines for the 2018 Formula 1 season after the collapse of its Honda deal.
The Honda deal was put together by Honda motorsport's general manager Masashi Yamamoto and former Sauber team principal Monisha Kaltenborn after the latter made an enquiry about a supply. Following Kaltenborn's departure in June, just before the Azerbaijan GP, Sauber and Honda held talks and decided "differences in the future directions" of the two parties meant it was best to cancel the deal.
Sauber has had to use year-old Ferrari engines this season, but its new deal is for latest-specification power units.
Team principal Fred Vasseur said: "I am very pleased to confirm that we will continue to work with Scuderia Ferrari as our engine supplier in form of a multi-year agreement.
"The shared experience between the Sauber F1 team and Ferrari has built a strong foundation, which will allow us to move forward swiftly and efficiently, also in terms of the development of the 2018 car.
"I am convinced that together we can achieve the results which reflect the passion and determination that is, and always has been, behind the Sauber F1 team."
Sauber first linked up with Ferrari back in 1997 and the new deal comes amid a renewed push from owner Longbow Finance to improve the team's performances. Sticking with Ferrari engines may also lead to Sauber taking on one of Ferrari's junior drivers next year – with Antonio Giovinazzi and Charles Leclerc both looking for F1 opportunities.