Talented young Kiwi driver Marcus Armstrong will race in Formula 3 with one of the sport's glamour teams next year.

The 17-year-old will drive in one of the most highly-regarded feeder categories into Formula with the Prema Racing team as he continues his apprenticeship with Ferrari.

Armstrong won the Italian Formula 4 championship while finishing runner-up in the German Formula 4 series this year as well as being part of the Ferrari Young Driver Academy.

"I'm thrilled to work with Prema in Formula 3, especially after all the success we enjoyed this year in F4," Armstrong told Autosport.

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"I know everyone well within Prema and I feel privileged to work alongside such an experienced bunch of guys.

"From my first laps in F3 I really enjoyed the car - after this December I hope to understand it well so we can hit the ground running in 2018."

Armstrong, who will return to New Zealand over summer to compete in the Toyota Racing Series, has already had a couple of tests in Formula 3 and put up some very impressive laps.

"Marcus really put up a brilliant display in his first full-time season in European single-seaters and I can't wait to see him back on track in F3," Prema boss Rene Rosin said.

"He will need to step up for such a challenging series but I'm confident he will be absolutely up for it, considering how impressive he was this season and how he kept up with his professional improvement.

"Our F3 line-up is coming together nicely and we are looking forward to the winter with confidence."