The BBC have confirmed that double world champion Fernando Alonso will be at Ferrari next season, replacing current Ferrari driver Kimi Raikkonen.
It is being reported that an announcement will be made within a few days, maybe as soon as Wednesday or Thursday.
The Spanish driver has signed a two-year deal worth a reported $23 million per year. The contract is understood to have extension options written into it.
This gives credence to the rumours that Raikkonen will join Mclaren next year and that Ferrari desperately want Sebastian Vettel driving for them when his contract with Red Bull runs out in 2012.
The rumours have been circulating since last season and have lead to many people to speculate about whether he would join or not.
Adding Alonso to their lineup of star drivers in their portfolio that includes Brazillian driver Felipe Massa, who is expected back in his Ferrari seat for the final race of the season in Abu Dhabi, and seven-time world champion Michael Schumacher, will make Ferrari push even more for a rule change to allow teams to run three cars rather than two.
Schumacher has hinted at a return and Luca di Montezemolo is eager for him to retake his throne.
It has also freed up the driver market. A lot of teams and drivers were waiting for Ferrari's announcement so that they could all act accordingly.
At the top of the driver transfer list is Raikkonen, who is currently without a seat for next season, although it is highly doubtful he will remain that way. Mclaren, Renault, Williams and Brawn are all supposedly interested in signing the 2007 champion.
A move to Mclaren is the most obvious, as they are the most well-paying team for him to join.
Raikkonen left the team at the end of 2006 after reliability issues cost him at least one world championship. He won his first world championship during his first season at Ferrari in 2007.
The move of Alonso from Renault to Ferrari will anger a lot of hardcore Ferrari fans who believe Raikkonen is the better driver for their team. However, a lot of fans are very interested in seeing a Raikkonen/Hamilton partnership at Mclaren.
After a very stromy relationship at Mclaren in 2007, we will have to wait to see how Alonso acts as a driver for the Scuderia.