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Repsol Honda have confirmed retiring Casey Stoner will be replaced by rookie Marc Marquez, who will ride alongside fellow Spaniard Dani Pedrosa for the next two years.

World champion Stoner announced at Le Mans in May that he would retire at the end of the season.

After failing to tempt Jorge Lorenzo, Honda have moved to sign Marquez.

The 19-year-old was 125cc world champion in 2010 and leads the Moto2 World Championship.

"To reach MotoGP next season with Repsol Honda is a dream come true and I want to thank HRC for their confidence in me," said Marquez.

"I am very proud to be a part of the big Honda family for the future and I don't want to forget all the people have helped me since I began to ride motorbikes.

"Now my focus is on Moto2 where my team and I are working very hard and we are excited to achieve our goal, which is to win the World Championship in 2012."

Pedrosa, who is second in the MotoGP championship, extends his contract with the team he has been with since 2001.

The 26-year-old made his debut in MotoGP in 2006, claiming the Rookie of the Year title and fifth position in the championship.

Pedrosa won his first race of the 2012 season last weekend in Germany and is second in the standings behind Lorenzo.

"I'm very happy to be able to announce my renewal with Repsol Honda for the next two years," he said.

"It's been a very long relationship with Honda and I had a strong desire to stay here. The fight for the championship this year is still open and the next two seasons will be very interesting for me.

"My whole career has been linked to Honda, since I entered into the World Championship in 125cc, then in 250cc and since 2006 in MotoGP.

"I'm perhaps one of the riders with the longest history with Honda, which makes me feel very proud. I want to thank HRC once again for their support; I'm sure that we have great things to do together."