Arjun will also by pioneering the new Three Bond engine, which will be provided by Japanese tuners Tomei and will be the only one on the grid of over 30 cars to run this engine.
The 18-year-old first drove for the team at this year's Macau Grand Prix, piloting the car to a top 10 finish.
He has been testing with the team since then and feels that the chemistry between both him and the team has given him the confidence to run the entire championship in what would be his second F3 season.
The Bangalore boy himself is quite optimistic for the coming year.
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"I'm quite excited to be working with T-Sport, the team is filled with individuals who are extremely motivated like myself and after the race in Macau, the decision was much easier for me to make. The Threebond engine in particular was exceptional in Macau and I'm quite excited to see how it does next year, Tomei have done a fantastic job with it and I'm sure it will be more than capable of competing with the Mercedes and Volkswagen power plants," said Arjun, who raced for Van Amersfoort Racing in his rookie year.
The season begins on April 1 at the Paul Ricard circuit in France.