The deal, which will reportedly be officially unveiled at Red Bull's 2023 season launch in New York on Friday, marks Ford's return to Formula 1 after 19 years and will see them join forces with Red Bull Powertrains.
Red Bull Powertrains, which already employs around 500 people, is well advanced with its plans for 2026, and the partnership with Ford will allow them to take advantage of Ford's rich heritage in F1.
From 1967 to the early 1980s, the Cosworth DFV V8 engine funded by Ford dominated the sport and remains the most successful engine in F1 history with 155 wins.
The deal comes as Ford's US market rival General Motors attempts to enter F1 with the American Andretti Global organization.
Andretti has a deal to carry the logos of GM's Cadillac brand but is planning to use a Renault engine in its car, with hopes to enter F1 in 2025, pending approval from the sport's governing body, the FIA.
With the new partnership between Red Bull Racing and Ford, the 2026 season is shaping up to be one of the most exciting yet, as two of the biggest names in motorsports come together to conquer the F1 circuit.