Mick Schumacher, son of seven-times Formula 1 World Champion Michael, will continue to represent Prema in the European Formula 3 series in 2018.
Schumacher, 18, first linked up with Prema for 2016, finishing runner-up in both the Italian and German Formula 4 championships, and stepped up to F3 for 2017.
Schumacher scored a podium in only his second event at Monza, but failed to reach the top three thereafter, and finished a low-key 12th in the standings.
The German will remain in the tertiary category for 2018, staying with powerhouse squad Prema, partnering Marcus Armstrong, Robert Shwartzman, Guan Yu Zhou and Ralf Aron, completing the team's line-up.
"The competition in Formula 3 is tough, strong and tight; it is enriching to fight at this level, that’s why I very much look forward to racing here for another season," he said.
"The fact that I can continue to work with a professional team such as Prema can only help me move forward.
"The team is great to work with and I am convinced we can experience some more exciting moments together. I am committed to advancing further and want to fight at the top with the best drivers."
Added team boss Rene Rosin: "We are happy and proud to have Mick with us again for 2018. Last year he faced a challenging debut season, moving up from Formula 4, but he showed great personality and huge potential, so we fully expect him to make further gains this season.
"We will be lining-up five cars in an increased effort for 2018 and we expect this to be an exciting season. We are determined to put up our best efforts in order to stay in the hunt for more success."
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