Carlos Sainz will remain at Toro Rosso for the 2017 Formula One season, according to Red Bull team principal Christian Horner.
Sainz has been linked with a move away in recent weeks, touted as a possible replacement for Kimi Raikkonen at Ferrari.
But Red Bull were keen to hold on to the promising 21-year-old, extending his deal beyond the current campaign.
"We took up his option earlier this week so he is committed to Red Bull for the next 12 months - then we have the ability to place them where we want," Horner said.
"He is currently at Toro Rosso and that is where he will be next year."
Horner also hinted Daniil Kvyat is expected to keep his seat with Red Bull's sister Toro Rosso team for next year.
"I think Dany Kvyat is continuing his development, he is finding his feet now," he added.
"There isn't an obvious candidate knocking on the door at the moment that would warrant that seat."
Sainz is 14th in the drivers' standings with 18 points, four behind Kvyat who holds 10th place.