Fernando Alonso has purchased the Euskaltel Euskadi cycling team's WorldTour licence for €6m.
The Euskaltel Euskadi had previously confirmed that they would be withdrawing from the sport at the end of this season due to financial reasons.
However, the team has now been saved.
Alonso, an avid cycling fan, and his sponsors has purchased the Basque Pro Cycling Team, which owns the WorldTour licence under which Euskaltel Euskadi races.
According to reports, the Ferrari driver plans to build the team around Samuel Sanchez, the 2008 Beijing Olympic road race gold medalist.
"Euskaltel wants to thank the double Formula 1 Champion for reaching an agreement and would like to emphasise the respect, understanding and love that Fernando Alonso has shown for the Euskaltel Euskadi team, its professionals, its historical legacy and his hobby," said a statement from the cycling team.
This news is the "important news" that Alonso Tweeted about earlier in the day.
A statement on the Spaniard's website read: "He [Alonso] would also like to thank Euskaltel for their good will and predisposition during the negotiations which have been conducted discreetly and cordially with the sole intention of saving the team.
"At the same time, the Spanish racing driver would like to thank the Basque fans, who at all times and in spite of the difficulties, have supported the team. Fans who Fernando would like to ask to continue supporting this new project with the usual passion they transmit to the racers."