Loeb himself already competes in World RX with Peugeot's factory operation.

The Sebastien Loeb Racing Peugeot has been independently developed in collaboration with Onroak and ORECA, with team co-founder Dominique Heintz calling SLR's version "a concept that has been pushed right to the limit".

Demoustier previously drove for SLR in the World Touring Car Championship in 2016, before moving into RX last year for a partial campaign in a DA Racing Peugeot.

"Entering the FIA World Rallycross Championship represents a new, exciting challenge for Sebastien Loeb Racing," said Heintz.

"The category is developing fast and creates real interest with the media and fans, as well as it being increasingly competitive.

"Sebastien knows this well and it will be great to see him during each round this year."

"We are also delighted to welcome back Gregoire, with whom we had the pleasure to work with in WTCC during the 2016 season.

"His experience in World RX will be very useful, and it is also always great to work with drivers we know well and appreciate."

Demoustier admitted that "2018 will remain a development year, on the technical side, as well as personally" giving his and the team's lack of RX experience.

"Even if I competed at some rounds last campaign, it is still a brand new venture and I have not set any objectives for myself," he added.

"Saying that, we hope to get good results here-and-there and reach some semi-finals."

SLR is also running Rob Huff and Mehdi Bennani in Volkswagens in the new WTCR series this year, alongside its programmes in sportscar racing and lower-level rallying.