Sean Gelael will continue to race for Prema in Formula 2 next year as team-mate to rookie Mick Schumacher.
The Indonesian came 15th in the F2 standings in 2018, his third full year in the category.
He finished second in the Monaco feature race but failed to score a point thereafter.
With race-winning team-mate Nyck de Vries switching to ART to partner Nikita Mazepin, Gelael will be the experienced driver in the Prema camp next season alongside reigning European F3 champion Schumacher.
“This has been an up-and-down season but I want to say thank you for all the experience that we gained,” Gelael said.
“The start of the year has been strong but from the middle onwards it turned a little gloomy. We know what we did wrong though, and what we need to do better and there’s quite a lot of unfinished business.
“I’m happy that the team put forward the trust in me to make an even better job next year.”
Team boss Rene Rosin added: “We are delighted to continue working with Sean for the new season. He scored promising results in 2018 and also proved to be a really valuable asset for the team thanks to his true dedication.
“He is the first driver to return for a second season since we started our Formula 2 programme so it will be interesting to understand the dynamics, but we are sure the benefits will be there as well as the results.
“We want to help Sean show his real potential and we can’t wait to start 2019.”