Dani Pedrosa has renewed his contract to ride for the factory Repsol Honda MotoGP team in 2008 and 2009.
Pedrosa will continue to ride alongside America's Nicky Hayden
The Spaniard, 21, has so far spent his entire career with Honda, winning the 125cc title in 2003 and the 250cc crown in 2004 and 2005.
Pedrosa had a brilliant top-class debut season in 2006, winning in China and Britain, with eight podiums in total.
He won this year's German MotoGP but is a distant third in the standings, 99 points behind leader Casey Stoner.
Pedrosa said: "Although this year things have not turned out to be quite as we wanted, Honda and I have the spirit to come back with renewed motivation, stronger than ever."