Scott Redding will remain with the Marc VDS Racing Moto2 squad in 2013 after hopes of a Ducati or Honda switch to MotoGP vanished.
The Gloucestershire rider’s new deal will be confirmed during this weekend’s Malaysian Grand Prix at Sepang, while Finn Mika Kallio is to remain his teammate in an unchanged line-up.
The Belgian-based Marc VDS Racing squad had reached an agreement to sign Frenchman Johann Zarco, but that deal collapsed at the last minute.
Redding was hoping for a switch to MotoGP in 2013 after a successful test for Ducati in Mugello at the end of July.
The youngest Grand Prix winner in history took part in a two-day audition for what he thought was a ride in a new Ducati ‘junior squad’ aimed at developing and nurturing young talent.
Ducati seemed keen on Redding and Iannone but then signed Ben Spies to partner the Italian Moto2 rider.
Redding’s treatment by Ducati was heavily criticised by Redding’s manager Michael Bartholemy.
The British rider was then linked with a move to the Gresini Honda squad but Alvaro Bautista secured that RC213V slot when he penned a new deal in Japan last weekend.
Redding, who is currently fifth in the Moto2 standings after scoring four podium finishes, was keen on a switch to MotoGP because his height and weight is a big disadvantage in the 600cc four-stroke category.
The Marc VDS Racing squad is also looking to expand into the new Moto3 category by moving up highly rated Red Bull Rookies Cup rider Livio Loi. The team is waiting for its application for a grid slot to be approved by the International Race Teams Association.