Last month the newly revitalised Lotus team also announced it would return to the sport with a Cosworth engine, and yesterday Williams confirmed they would renew their association with the Northampton company, which first began in the 1970s.

Williams's boss, the motor racing legend Sir Frank Williams, said: "Cosworth have impressed us with the quality of their technical team and convinced us that their programme will deliver a competitive Formula 1 engine.

"In addition, like Williams, Cosworth is an independent company whose owners share our passion for racing and engineering.

"We believe that, working together, we will develop not only a competitive racing car for 2010 but also a long-term partnership that can take on the best in Formula 1."

Williams have a long history with Cosworth, securing their first victory in 1979 with an engine made by the Northampton firm and their first world title in 1980.

Sir Frank has also said Cosworth's location, just 50 miles from the Willliams base in Oxfordshire, would help the two organisations develop a strong working relationship.

The general manager of Cosworth's Formula 1 division, Mark Gallagher, added: "We're delighted to be renewing our partnership with Williams.

"We look forward to forging a long-standing relationship, not only for the supply of competitive Formula One engines, but also in the joint development of new technologies that have wider application outside of Formula One."

Following the latest deal, Cosworth will be the largest engine supplier on the Formula 1 grid in 2010.

The dramatic turnaround comes after Cosworth fell out of the sport altogether in 2006, following the loss of deals to supply both the Williams and Toro Rosso teams.

Sir Frank has also backed the future of Northamptonshire's Silverstone circuit, arguing that the British Grand Prix should be staged there.

In an interview with the Gulf News, he said: "Silverstone will always be there in Formula 1 and they deserve to keep the Grand Prix, because it is a great circuit."