Russian teenager Daniil Kvyat has been named as Daniel Ricciardo's replacement in the Toro Rosso team, who will retain Jean-Eric Vergne in 2014.
Kvyat, 19, saw off competition from Antonio Felix Da Costa to take the seat of Ricciardo, who is heading to Toro Rosso's parent team Red Bull to replace the retiring Mark Webber.
Kvyat, who has been competing in the GP3 and FIA Formula 3 European Championship this season after coming through the Red Bull Junior Driver Programme, completed a test for Toro Rosso in July and impressed team bosses with his all-round approach.
"We are pleased to continue our policy of bringing on drivers from the Red Bull Junior Programme," said team boss Franz Tost.
"Daniil is a very talented driver, which can be seen from his results in all the junior categories. He was a very successful kart driver and in 2012 he took the Formula Renault 2.0 Championship title with seven wins.
"This year, he competed in six rounds of the FIA European Formula 3 Championship, taking one win, five poles and five podiums.
"In addition to this, he is still in a position to win the GP3 Championship as he is only seven points behind the leader.
"He impressed our team with a strong performance and very informative technical feedback at the young driver test in Silverstone. This suggests that the basic qualities from which he can progress are all in place.
"Daniil can be sure that we will use all our experience of training youngsters to give him the best possible start to his Formula 1 career."
Kvyat described the promotion as "a dream come true".
"I want to thank Red Bull and Toro Rosso for giving me this priceless opportunity," he said.
"Ever since I began karting, I wanted to get to Formula 1 and now that wish will become reality next season.
"I had a brief taste of working with the Toro Rosso team when I drove for them at the Silverstone test, and I enjoyed the experience very much."
Da Costa had been next in line for the seat, having raced in the more senior Renault 3.5 category this season.