Ricciardo will partner Briton Lando Norris, while Sainz is to replace four-time world champion Sebastian Vettel at Ferrari.

McLaren Racing chief executive officer Zak Brown said Ricciardo would bring “an exciting new dimension to the team”; Ferrari said Sainz was “the ideal fit”.

Ferrari team principal Mattia Binotto added that Sainz “had proved to be very talented and has sown that he has the technical ability and the right attributes”.

Vettel’s departure from Ferrari at the end of this season was confirmed on Tuesday.

The teams and drivers were in negotiations for some time.

The domino effect in the driver market was triggered when negotiations over a new contract between Ferrari and Vettel failed.

Ferrari announced on Tuesday that the German four-time world champion would be leaving the team at the end of the season, which is currently on ice as a result of the coronavirus crisis.

Ferrari have identified Sainz as the ideal support driver for Charles Leclerc, whose starring performances in his first season with the team last year undermined Vettel’s status and precipitated his departure when he was not prepared to accept diminished contractual terms.

Ferrari will envisage Sainz in the type of back-up role Valtteri Bottas plays to Lewis Hamilton at Mercedes – quick enough to be close to him and engage in battle with other front-runners but not the team leader.

Sainz, who previously drove for Toro Rosso and Renault before moving to McLaren last year, is likely to view the move as an opportunity to prove himself as a top-line driver.

He excelled in his first season with McLaren last year and his strong race performances have earned him the call-up from Ferrari.