Juan Manuel Correa will spend a second season with Prema’s Formula 4 arm in 2017.
The Ecuadorian-American, who was previously on the books of the Lotus Formula 1 team while in karts, scored three Italian F4 victories in his rookie single-seater season with Prema last year.
He came sixth in the standings in the Italian series, and 10th in Germany’s ADAC competition with one podium.
Rather like team-mate Juri Vips, who has already been confirmed for a second season with Prema, Correa’s 2017 programme will focus on the ADAC series, with additional selected appearances in Italy.
“It really is a pleasure for me to continue working with such a special group of people that is Prema for 2017,” said Correa, 17.
“Both the team and I have big ambitions for this coming season, and I’m sure that it will be another very enjoyable year together.”
Team boss Angelo Rosin added: “Being able to continue our collaboration with Correa for 2017 is very meaningful for us as a team.
“As well as his teammate Juri Vips, he showed huge potential and delivered remarkable results in 2016.
“After working with such a talented pairing last year we know that, with more experience together, we will be strong right away in an effort to bring home some high-profile results.”
Prema could also add new Ferrari Driver Academy recruits Marcus Armstrong and Enzo Fittipaldi to its F4 line-up after recent tests.