Sheffield-based Manor Motorsport, which helped Lewis Hamilton on his way to the world championship, revealed it would create about 50 jobs locally and had enough financial backing to remain in F1 for at least four years.

The company, which also has a site in Bicester, Oxfordshire, will race under the team name Manor F1 Team – one of three new marques on the constructors' list for the 2010 season, which also includes Ferrari, BMW and current championship leaders Brawn GP.

Team principal John Booth, himself a former motor racing champion, said: "It's got to be a plus for the regional economy.

"I don't think F1 is going to be an organisation where each team employs nearly 1,000 people any more, but we are planning to create 50 or so jobs for people in South Yorkshire and we will, of course, be working with local suppliers.

"Yorkshire folk are a bit reserved and generally we don't like to talk about something until it's happened, but there has been about four or five months' detailed planning for this."

Hamilton, the current F1 world champion, raced with Manor Motorsport for three years until 2004.The company currently runs a Formula Three team and has applied for planning permission to extend its Dinnington base by 5,000 sq ft to accommodate the extra staff it needs to make the step up to F1.

Mr Booth said that, while precise sponsorship details could not be disclosed for at least six months, commercial arrangements were in place to keep Manor F1 Team in the sport for four years. The team would run "to Yorkshire values – as cleanly and efficiently as possible".