Andrea Iannone will lose his seat at Ducati for the 2017 season, with incoming Jorge Lorenzo to replace the Italian, whilst Andrea Dovizioso will remain, the team confirmed on Tuesday.
Reigning MotoGP world champion Lorenzo announced last month that he would switch from Yamaha to Ducati next season, leaving the manufacturer to decide between Dovizioso and Iannone.
The team have now confirmed that Dovizioso will continue as Lorenzo's team-mate until at least the end of 2018.
"I am very satisfied to have reached this agreement with Ducati and to be able to continue the adventure begun back with them in 2013," said Dovizioso.
"In the last few years we have worked with a lot of commitment and we have succeeded in taking the Desmosedici GP to an excellent competitive level, and so I am convinced that soon we will obtain the satisfaction that we deserve."
Iannone, who has yet to secure a ride elsewhere, thanked the team for the opportunity they afforded him after he made his debut with the Pramac team before being promoted to the factory outfit last year.
"Obviously I am sorry that my time with Ducati will draw to a close at the end of this season, but I am grateful to the Bologna manufacturer for the opportunity it has given me in the last few years," he said.
"I made my MotoGP debut with Ducati and I have grown up with them, always succeeding in improving my level of performance."