Jamie Sharp will continue in the British Formula 4 as Sharp Motorsport looks to expand to two cars in 2018.
Both Sharp and the team made their F4 debuts last season, with Sharp finishing 15th in the overall championship.
After a year of learning, the squad has changed its approach this season and believes it will be competitive.
“We’ve worked incredibly hard over the winter to give Jamie the best possible chance this year,” said team boss Joe Sharp.
“Jamie’s got new management so 2018 should be a good year for us. We’re doing lots of things differently – we’ve had a year of learning now.
“We’re in talks with other drivers so we may be running more than one car. Jamie needs a team-mate for the data and it makes us a team.
“We have a new performance package in place now and see ourselves as a fully functioning, competitive race team which has earned the right to stand alongside the established teams in the paddock.”
He added that the team has been working to improve in all areas, including technical, sporting, and commercial.
Jamie Sharp is looking forward to his second season in F4. The teenager finished fourth fastest in the first official preseason test of 2018 but believes its too early to judge where he’ll stand come the start of the season.
“We’ve been working hard over the winter and I’m confident heading into the first race on the back of all the training I have done.
“I feel prepared for a more successful year, but we need to see how the rest of testing goes to get a more accurate picture of how competitive we are.
“I hope to be running at the front from the very early stages and I’m excited to see how much the team and I progress throughout the year.”
Sharp picked up nine top 10 finishes over the course of 2017, including a season-best of seventh at Donington Park.