Pirelli has won the contract to remain in its position as Formula One's sole tyre supplier from 2025 to 2027, with the option to extend an additional year.
The Italian tyre manufacturer faced opposition from Japanese brand Bridgestone when the contract was put out to tender earlier this year.
Pirelli has supplied tyres to the series since 2010 when it took over from Bridgestone.
The sport's governing body, the FIA, put both suppliers forward as suitable and F1, led by CEO Stefano Domenicali, made the final decision by striking a commercial deal with Pirelli.
Asked why Pirelli won the contract ahead of Bridgestone, Domenicali said: "As always someone has to make a choice and I think that all the parameters are related, of course, on the technical side with the FIA, which is absolutely relevant, and on the other side we have a duty to work on the commercial part of it.
"I would say I would like to thank Bridgestone, because they entered the process and are showing that F1 is a platform where also other manufacturers have the possibility to come in and join.
"Then of course, when we came to a decision we felt that it was the right thing to progress [with Pirelli]. There are a lot of technical challenges in the future and there also a lot of commercial opportunities in the future that we believe, with the choice we have taken, is in the best interests of Formula One."
In a statement confirming the news, the FIA said Pirelli has been set targets to produce a tyres that is "designed to ensure a wide working range, minimise overheating, and have low degradation whilst also creating the possibility for variation in strategy".
Pirelli's contract also covers tyre supply deals with Formula 2 and Formula 3.