Fernando Alonso confirmed the fact that he will return to his former team Renault.

The announcement was made on the driver’s website on Monday. Alonso made his debut at Renault in 2001 and managed to become sport's youngest world champion in 2005.

"This is the team where I grew up as a driver in F1. Now it is time for us to begin a new chapter together," said the 26-year-old.

"I am very excited about working with this great team once more, and confident that together we can move back to the front of the field."

His new partner at Renault will be former Renault test driver Nelson Piquet Jr who received the other driving seat for the 2008 season. Alonso left the British-German team McLaren-Mercedes after just one season.

The financial details of Alonso’s new contract weren’t disclosed by Renault, nor were the details about the length of the deal, but according to several media sources the Spanish driver has agreed a three-year deal worth up to 100 million dollars.

"We are delighted to be welcoming Fernando back home to the team where he enjoyed his greatest success," said Flavio Briatore, the managing director of the Renault Formula One team and joint owner of Queens Park Rangers FC.

"His abilities as a driver and a team leader are well known, and we look forward to forging another strong partnership."

Renault offered Alonso a three-year deal, while the Spaniard wanted just one year. The French constructor bosses fear that Alonso might use Renault just as a team to bridge the gap until he joins Ferrari in 2009.

Apparently, Alonso has compromised to a three-year contract with a get- out clause that might allow him to leave the team after one year.

With other teams like Red Bull and Toyota interested in his services, Alonso reportedly picked Renault because "of their strong track record."

Two-time world champion Alonso finished third in the 2007 championship and is expected to help Renaul do better than in the 2007 season. Renault’s Heikki Kovalainen and Giancarlo Fisichella finished down in seventh and eighth places in the drivers' standing.