Chaz Davies has ended speculation about a possible switch to MotoGP by agreeing to stay with Ducati in World Superbikes.

The Powys-born rider has agreed a two-season deal that will keep him with the Italian manufacturer until at least the end of 2017.

Davies will be joined next season by his old sparring partner Marco Melandri who will make his World Superbikes championship comeback with the Aruba.it Racing outfit.

The 29-year Davies, third in this season’s standings, said: “I’m extremely happy to renew my professional relationship with Ducati for two more seasons.

“The continuity element is really important in our job, and so far we’ve made great strides and got progressively closer to our goal.

“Now we can fight for the win practically on every track, and I’m confident we can make further improvements.

“Moreover, to race for Ducati is something special: everything is done with heart and passion, you really feel part of a family and have a direct connection between the production and racing. It’s going to be exciting.”

Davies was partnered with Melandri at BMW in 2013 and they will link-up again with the Italian replacing the axed Davide Giugliano

The former 250cc world champion had been strongly linked to a return to World Superbikes with firm financial backing.

“I’m really excited to come back to racing, it’s a dream come true,” said the 33-year-old Melandri. “I always said I was only interested in a top bike and top team, and I could not have asked for more.

“I kept following WorldSBK closely, and I’m confident the Panigale R can perfectly suit my riding style. We’ll just have to take one step at a time, but the potential is surely high.

“I know it won’t be easy to get back up to speed, but I have all the time to step on the bike, do laps and make sure I’m ready for the first test: to this end, I will skip the holidays to train on a street version of the Panigale R.”

The series is currently on its summer break with the next round in Germany on September 16-18.