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Paris - Spain's former MotoGP world champion Jorge Lorenzo will remain with Yamaha Factory Racing for the 2013 and 2014 seasons, his team announced in a statement on Tuesday.
Lorenzo, 25, moved to the Japanese constructor in 2008 and went on to win the world title in 2010, as well as finishing second in 2009 and 2011.
The announcement ends speculation of a possible switch to Honda, who are looking for a new rider after Australian Casey Stoner's decision to retire at the end of this season.
"I am extremely happy to have signed with Yamaha for two more years. They've made great efforts to retain me in the Factory Team so I want to thank all those involved at Yamaha for this," Lorenzo said in a statement published on the team's website.
"It has always been my first option to stay here and so I'm happy that this important negotiation has finished with such a positive outcome.
"Now I can focus on the championship and I'm looking forward to paying back Yamaha's trust in me starting at Silverstone (the British Grand Prix) this weekend.
"I look forward to winning many more championships together; my dream to finish my career with Yamaha is now closer to becoming a reality!"
Lorenzo is currently top of the world championship standings, 20 points clear of Stoner, having won three of the five races so far this season, including in the most recent race in Catalonia on June 3.
Before moving to MotoGP, the Spaniard won the 250cc world title in successive years in 2006 and 2007.
