Lilly, 21, will race a Husqvarna TC125 in the National 125cc class this season, hoping to improve upon the No 5 ranking he achieved on debut in the class in 2015 and the No 4 ranking he achieved in the 2016 nationals earlier this year.
With experienced campaigner Howard Lilly - a former New Zealand Motocross of Nations team manager, at the helm of the team, there is no reason to doubt that two podium finishes are realistic prospects.
"We are very excited about the season ahead," said team owner Howard Lilly.
"We have a very strong team, certainly one that offers a good chance of winning two national titles. We have put our two riders into two separate classes so that we can increase our profile across the board.
"We also offer an invitation for young riders to join us on Junior Ride Days at major events around the country.
"We encourage young riders of Husqvarna bikes to come under our marquee during the junior segment of such major events as the Auckland Motocross Championships, the Summercross at Whakatane and the New Zealand Motocross GP at Woodville."
The HLR Husqvarna team will also have a presence overseas in 2017 - Knight will compete with KTM in Japan racing the final round of the JMX on the Sugo MX track in October.
The JMX is Japan's premier motocross competition and the last round is generating great excitement as the championship closes.
Northern Accessories manager Steven Croad said he was thrilled to be able to facilitate the opportunity.
"This is a significant opportunity for Hadleigh, as this international competition is renowned for being very tough and close with some very special factory bikes in the race.
"However, his sheer speed and ability are expected to deliver the results he deserves," said Croad.
If young riders are interested they should email Howard Lilly at vfkaraka@gmail.com.