Red Bull will use Infiniti branded Formula One engines for the 2011 season, though the deal simply sees the current Renault engines rebadged Infiniti.
The move is part of a marketing strategy to increase Nissan’s premium car brand in Europe and Asia.
The F1 Times reported on such a deal in January, with the BBC confirming the report today, whilst an official announcement is expected on Tuesday at the Geneva Motor Show.
Nissan is part owned by Renault and vice versa, meaning Red Bull will now receive their engine supply for free. This is reportedly saving them around £8-9 million a year, a sum which can now be invested in other areas of development, though it is unclear whether this tie-up sees further investment from the car giant.
The European region is an almost untapped market for the premium Japanese brand which is a subsidiary of Renault-Nissan. The large European F1 audiences will allow the company to strengthen its brand, enabling it to compete with other premium manufacturers such as; Audi, Mercedes and BMW.