Renault have announced that Jolyon Palmer will keep his seat for the 2017 Formula 1 season.

The futures of Palmer and Kevin Magnussen have been in doubt amid speculation over who will partner Nico Hulkenberg in the new campaign.

Last week, a PR official for the F1 team was forced to deny that a 'Magnussen edition' of the Renault Clio was an indication that the Dane would be kept on.

On Wednesday, Renault announced that Palmer, who made his race debut earlier this year, will be included in the driver lineup for 2017 instead of Magnussen.

"I'm over the moon to be racing with Renault Sport Formula 1 team for a second season and I can't wait to reward the team's faith in me on track," Palmer said in a statement. "Having worked out of Enstone since 2015 I can fully appreciate the development of the infrastructure this year.

"This means I share the excitement of the team looking to 2017 and our new car. For me, it's been a steep learning curve driving in Formula 1 and I know that I am performing better than ever, and that there's still more to come. There is tremendous drive and enthusiasm in Enstone and Viry looking to next year and I am honoured to be part of this."

Renault sport racing chairman Jerome Stoll added: "We are delighted to retain Jolyon as our driver for the 2017 season. Jolyon has shown his hunger to develop with us as the team grows and we have been impressed with his increasingly strong performances on track as the season has progressed.

"We are confident that the combination of Jolyon and Nico Hulkenberg offers a very promising driving force to meet our goals. Jolyon understands the team's spirit and motivates everyone he works with.

"The lineup of Jolyon and Nico harnesses the benefits of continuity and fresh blood. I am sure that having Nico as a teammate will help push Jolyon to greater achievements. We thank Kevin Magnussen for his efforts in 2016 as he has done a great job for us this year. We wish him all the best for 2017 and beyond."

Palmer has started 18 grands prix, and claimed his first championship point in Malaysia.