Felipe Massa's vacant Ferrari seat will be filled by Giancharlo Fisichella from the Italian Grand Prix until the end of the season, after the Italian was released from his contract with Force India.
Although the move has been widely anticipated in the F1 paddock, Force India has said that serious discussions only began yesterday, after it was confirmed that Massa would be unable to race for the rest of the season.
The announcement seems like a tough blow for Force India, especially after Fisichella's stunning run to second place at the Belgian GP last weekend, but Force India owner Vijay Mallya was magnanimous about Fisichella's move.
"For any Italian driver, a Ferrari race seat is a long-held dream and for Giancarlo it was no exception," said Mallya. "No one should stand in the way of this. Furthermore the agreement will secure Giancarlo's long-term future with Ferrari and it would be incorrect to jeopardise this, particularly when Giancarlo has made such a vital contribution to Force India."
Force India is said to have debts with Ferrari - a hangover from the team's customer engine supply deal with Ferrari from last year - but Mallya denied that Fisichella's move included debt settlement with Ferrari.
"We would like to stress that we have not agreed any financial settlement with Ferrari," he said. "This agreement has been made in good faith and for the good of Giancarlo and the sport in general. A competitive Italian driver in a Ferrari for Monza is a positive story for Formula One, which can only help raise the sport's profile in these difficult times.
Test driver Vitantonio Liuzzi is expected to race alongside Adrian Sutil for the rest of the season, although Force India is yet to confirm this.