The 27-year-old will drive an updated Ford Fiesta R5, which has been under development for six month by Malcolm Wilson’s outfit.

The Welshman joined M-Sport in 2013 for a WRC2 campaign, which he ended in seventh place with a victory on home soil.

He then graduated to WRC and, after a solid rookie season, was retained for 2015, securing podiums in Argentina and France in his sophomore campaign.

Finishing seventh in the standings, he was overlooked for a contract extension in favour of Mads Ostberg and Eric Camilli, but he will nonetheless continue his partnership with M-Sport.

“This programme will allow me to continue my development as I gain further experience of the FIA World Rally Championship events," said Evans.

“I know the Ford Fiesta R5 to be a competitive car and the upgrades look extremely promising. I’m looking forward to getting back behind the wheel and proving the extent of M-Sport’s development.

Evans will work with a new co-driver in Craig Parry, who is set to join him for both Rallye Monte-Carlo and Rally Sweden.

“I would also like to thank Dan [Barritt, previous co-driver] for what has been three great years of co-operation. His knowledge and experience has taught me a great deal and I am extremely grateful for all he has done.

“Now it’s time to start a new chapter with a new co-driver and I am looking forward to working with Craig as we look to achieve our shared goals and ambitions.”

Malcolm Wilson added: “We were keen to keep Elfyn in the team and this programme will allow him to continue his progression and gain further experience away from the pressures of the top flight.

“Launching the new evolution Fiesta R5, we were eager to have an experienced driver behind the wheel and I believe that Elfyn will do a great job of proving the extent of our upgrades.

The first event of the 2016 World Rally Championship will take place in Monte-Carlo in two weeks’ time.