Jenson Button will join the Benetton Formula One team from BMW-Williams next season on a two-year loan. Button (20), who has made a big impression by scoring eight points in his debut season, will see out the remaining races this year with Williams.

Benetton have hired the British driver for 2001, when he will partner Italian Giancarlo Fisichella, and 2002 when Renault make their official return to the sport after buying Benetton in March. Benetton managing director Flavio Briatore paid tribute yesterday to the British driver, who has a five-year contract with Williams and will return to the team in 2003.

"Jenson has done an incredible job for his first year in Formula One," Briatore said in a statement. "He has shown natural talent and intelligence, which are two important characteristics for a driver."

There has been speculation about Button's future for the past three months, amid media reports he would be replaced by Colombian Juan Pablo Montoya next season. Button, who made history as Formula One's youngest points-scorer at the Brazilian Grand Prix in March, thanked Williams for giving him his break.

"I will always be eternally grateful to Frank Williams and Patrick Head at Williams for giving me my great opportunity in Formula One," he said on his own website. "I have some unfinished business at Williams and I'm looking forward to the remaining races this season."

Meanwhile, British American Racing (BAR) confirmed yesterday that Olivier Panis will partner Jacques Villeneuve next season. Panis, who will fulfil his test-driver duties with McLaren before moving at the end of the year, announced on Wednesday he would sign a two-year deal.

The Frenchman will replace Ricardo Zonta at BAR after the former Champ Car driver failed to impress, scoring just one championship point in two seasons. BAR managing director Craig Pollock hopes the appointment of Panis will help his team develop in their third season in 2001.

"Olivier Panis is an experienced Grand Prix driver, a highly-rated test driver and a proven race winner, and we believe his knowledge and ability will assist the team greatly," he said. "Any decision concerning our driver line-up is a complex matter and had to be carefully considered. Ours is a young team and one that has set itself some ambitious targets."

Panis, who made his Formula One debut with Ligier in 1994 before moving to Prost in 1997, has one Grand Prix win to his name after victory in Monaco in 1996. Zonta is expected to join Swiss outfit Sauber next season.