Sebastian Vettel will join the Ferrari Formula 1 team on a three-year deal from 2015, the Italian squad has officially announced.
Ferrari was always known to be Vettel's destination when his departure from Red Bull was revealed in October, with team boss Christian Horner openly admitting that it was the Maranello squad that had lured the four-time F1 world champion.
Vettel replaces McLaren-bound Fernando Alonso at Ferrari, where he teams up with Kimi Raikkonen.
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He described the deal as a dream come true.
"The next stage of my Formula 1 career will be spent with Scuderia Ferrari and for me that means the dream of a lifetime has come true," said Vettel.
"When I was a kid, Michael Schumacher in the red car was my greatest idol and now it's an incredible honour to finally get the chance to drive a Ferrari.
"I already got a small taste of what the Ferrari spirit means, when I took my first win at Monza in 2008 [with Toro Rosso], with an engine from the Prancing Horse built in Maranello.
"The Scuderia has a great tradition in this sport and I am extremely motivated to help the team get back to the top. I will put my heart and soul into making it happen."
Ferrari team boss Marco Mattiacci said that Vettel had the ideal character for helping his squad end its current title drought.
"Scuderia Ferrari has decided to put its faith in the youngest multiple champion in the history of Formula 1," said Mattiacci.
"In Formula 1 terms Sebastian Vettel is a unique combination of youthfulness and experience and he brings with him that sense of team spirit which will prove invaluable when, together with Kimi, they tackle the challenges awaiting us, as we aim to be frontrunners again as soon as possible.
"With Sebastian, we all share a thirst for victory as well as enthusiasm, a strong work ethic and tenacity; key elements for all the Scuderia members to write together a new winning chapter in the history of Ferrari."
Current Toro Rosso driver Daniil Kvyat is graduating to Red Bull to fill Vettel's place alongside Daniel Ricciardo.