Jose Maria Lopez will race for the new USF1 team this season, according to his spokesman Miguel Mattos.
USF1 is the only Formula One team who has yet to official confirm a single driver for 2010 Championship.
And although the team initially stated that they would only be looking at American drivers, time constraints forced them to look elsewhere.
Finances also meant that paying drivers caught the eye of USF1 co-owner Peter Windsor, who on Friday reportedly wrapped up talks with Lopez after the money the 26-year-old needed to race was put together by a group of companies backing the Argentine.
"Everything has been agreed and the official announcement will be made on Monday," his spokesman told Reuters.
Lopez's signing will see him become the first Argentine to race in F1 since Gaston Mazzacane, who competed in 2000 and 2001 seasons.