The Jordan Formula One team is to be taken over by a group led by Russian-born businessman Alex Shnaider.
The team is to compete under the name Jordan Grand Prix in 2005, while Shnaider's Midland Group will announce further details "in due course".
Team boss Eddie Jordan said he would remain with the team in a "commercial and sponsorship capacity".
Shnaider, 36, is now a Canadian citizen and has made his fortune through interests in Russia and Eastern Europe.
He had been planning to set up his own Midland team to debut in 2006 with a car designed by the Dallara company, but a takeover of Jordan saves him having to pay a $48m (£26m) entry bond.
"I am very pleased with this development as it will give us a season of learning, and after the takeover has been completed, the chance to be competitive faster at the pinnacle of motorsport," Shnaider said in a statement.
He said that his plan to set up a team from scratch had not been altered fundamentally by the deal.
The Jordan team has been struggling financially and the deal could be worth around $50m (£26.6m) but the full details have not been revealed.
Recently, Eddie Jordan admitting he was spending £1m of his own money each month to keep the team afloat.
" This deal provides the team with the security and strength it needs "
"I have devoted 35 years of my life to motor racing and have had some really fantastic times," said Jordan.
"The last 14 years when I have been lucky enough to be involved in Formula One have been a highlight and winning our first Grand Prix in 1998 is a personal triumph.
"I wholeheartedly believe that Midland joining with Jordan will make the team stronger. I spoke to a number of interested parties in recent months and these are absolutely the right people.
"They are totally committed and as we look to the future, we will see this team return to the competitiveness we have proved we are capable of.
"The sport and the required resources have changed and this deal provides the team with the security and strength it needs."