Nicolo Bulega will make his Moto2 debut in 2019 with the Sky Racing VR46 team, while his place will be taken in Moto3 by rookie Celestino Vietti Ramus.
Bulega stepped up to the World Championship in 2016 with the VR46 Moto3 team, and scored two podiums in an impressive rookie campaign, though struggled to replicate this form last year and managed just three top five finishes.
2018 has proven to be even more difficult for Bulega, with just a solitary top 10 finish the highlight so far in a campaign he current resides 28th in.
Despite his dramatic loss of form, Bulega will take the place of the Pramac MotoGP-bound Francesco Bagnaia alongside Luca Marin in the intermediate class next year.
“After three years in Moto3, I feel ready to embark on this new adventure,” Bulega said.
“I will give the best of myself because I am very motivated, and I am very happy to have the Sky Racing Team VR46 at my side for this key moment in my career.
“I will continue to stay focused on this season, but it's true that I'm looking forward to getting on my new bike.”
Bulega's vacant KTM will be taken by the team's CEV Moto3 Junior World Championship runner Vietti Ramus, who managed a podium finish earlier this season in the series.
“It's any young riders dream to receive this kind of support for his arrival in the World Championship,” the young Italian, who will partner Dennis Foggia, said.
“In the space of two seasons in the Junior Team, I grew up, I gained competence and professionalism.
“The time has come to make this jump to launch a new challenge with Sky and VR46 Academy. I am very happy.
“I know I will have to make a lot of effort because work is waiting for me. But it's a great opportunity.”
Bagnaia currently leads the Moto2 standings for the VR46 squad by eight points in his battle for the title with KTM's Miguel Oliveira, who will join the Italian in making his MotoGP debut next season, after agreeing a deal with Tech3.
Elsewhere on the Moto2 grid, American Joe Roberts will join the CGBM Evolution team next season, while multiple Moto3 race winner Enea Bastianini will step up to the intermediate class with Italtrans.