Formula One newcomers Red Bull Racing will have their engines supplied by world champions Ferrari in 2006-2007.
Red Bull currently use Cosworth engines
Red Bull's engines are currently supplied by Cosworth but the team - re-formed from Jaguar's F1 outfit - announced plans to switch on Saturday.
Christian Horner, Red Bull's sporting director, said: "This is an enormous boost and underlines our commitment to compete at the forefront of F1."
Ferrari are currently supplying Sauber, who are now likely to link up with BMW.
Ferrari boss Jean Todt said: "The determination, motivation and enthusiasm of the people at Red Bull Racing were key factors in taking this decision."
Ferrari supplied engines to Minardi in 1991 and 1992, then took a break until 1997 when they signed up with Sauber.
Red Bull only joined the grid this year after taking over the Jaguar Racing team from Ford at the end of 2004.
But they are ahead of Ferrari in the championship standings in fifth after finishing among the points in every race to date.
Red Bull driver David Coulthard came fourth in the teams' first race in Melbourne in March and the Scot currently has 12 points in total after also finishing well in Malaysia and Bahrain.
Ferrari have traditionally expected teams they supply to vote with them on F1 political issues.
The Italians are in dispute with most of their rivals over the future of F1.
They alone alone have signed a new deal to commit to F1 beyond the end of 2007, while the majority of the other teams are holding out for major changes to the sport's administration and threatening to set up a rival series.