BMW-Sauber driver Nick Heidfeld ended speculation of a possible transfer by signing a two-year contract extension on Tuesday which will keep him with the German team until 2009.
The team also said they were retaining Polish driver Robert Kubica, who survived a horrific crash in Montreal in June.
Heidfeld, 30, is now expected to finish his career with BMW-Sauber and will earn a reported salary of five million euros on top of his win bonuses and has an option to extend his contract until 2010.
"Quick Nick" had been offered the opportunity to drive for Honda.
"BMW has always been our desired team and negotiations with them were our priority," Heidfeld's manager Werner Heinz told German agency SID.
"So we are glad he will stay with BMW."
Heidfeld is fifth in the World Drivers' Championship on 42 points behind leader Lewis Hamilton. Kubica is sixth on 28 points.