Lotus have beaten off competition from BMW Sauber to be named as the 13th team to compete in next year's Formula One World Championship, motorsport's governing body the FIA announced on Tuesday.
FIA said it had received an impressive application from the BMW Sauber Team but because of uncertainty over future ownership, after BMW announced that it will withdraw its support in 2010, Lotus was granted the 13th spot.
BMW Sauber were, however, handed the 14th place should a vacancy arise on next season's grid, something that coincided with their buy-out by Swiss firm Qadback Investments Ltd for around 80 million euros (116.8 million US dollars).
The news that a new sponsor has been found will strengthen the new team's position as FIA added that "a good case can be made for expanding the grid to 14 teams".
It would be "consulting urgently with the existing teams regarding the introduction of an appropriate rule change to expand the grid to 28 cars in time for the first Grand Prix in 2010".
The Lotus team, which competed in F1 from 1958 through to 1994, will be backed by 1Malaysia F1 Team Sdn Bhd, a partnership between the Malaysian government and a consortium of Malaysian entrepreneurs.
"This is not only a dream, it is a reality. Malaysia is part of Formula One and we are determined to do our best to make our mark in this arena," Malaysian Prime Minister Najib Razak said from Kuala Lumpur.
"I believe this is a meaningful development that will boost Malaysia's image," he said.
Tony Fernandes, the founder and CEO of the Malaysian-based Tune Group, owner of the Air Asia airline, will be team principal.
The role of technical director falls to Mike Gascoyne, who has more than 20 years of experience in Formula One having previously performed the same role for the Force India, Toyota, Renault and Jordan Formula One teams.
The team will initially be based in Norfolk, England, some 10 miles from the Lotus Cars factory at a 50,000 sq ft fully equipped facility built by Toyota for its initial Formula One programme and then used by Bentley for its successful Le Mans programme.
The team's future design, R and D, manufacturing and technical centre will be purpose built at Malaysia's Sepang International Circuit, with the team already having negotiated an engine supply deal with Cosworth.
"They (the cars) will be made in Malaysia and they will be made by Malaysians," Premier Razak said, adding that six shortlisted local and international drivers were being evaluated.
"We hope to officially introduce you to our two drivers by October 31, 2009," he added.
BMW Sauber meanwhile offered no news on whether the team's current drivers Nick Heidfeld of Germany or Robert Kubica from Poland would continue racing for the new team.