Josef Newgarden has signed a contract extension at Team Penske, taking one of the most valuable free agents off the IndyCar driver market for 2025.

Newgarden, 33, is fresh off of winning last weekend’s Indy 500 - which marked Penske's 20th win in the event - and will extend his stay at Team Penske beyond 2024 on a multi-year deal.

He signed for Penske ahead of the 2017 season, in which he won his first IndyCar championship - then following that up with another title in 2019.

His championships, combined with ending a 12-year wait for an Indy 500 win last year, had already made Newgarden the hottest property in silly season.

While there were rumours just before the season began about Newgarden looking at other teams, it became clear soon after that the most likely outcome was him staying at Penske.

One of the rumoured alternatives was McLaren, but when The Race asked Zak Brown about any interest in Newgarden ahead of the Indy 500, he said: “I think he's an awesome racing driver. But no, I'm set with my 62 drivers!”

Now Newgarden will race for Penske until at least the end of 2026.

“Driving for Roger Penske and this iconic team is a dream that I never thought I would realise,” said Newgarden.

“I’m thankful for the opportunities that I’ve been given during my time at Team Penske.

"I’m sure that we can achieve much more in the future. I still believe we haven’t reached our full potential together just yet.”

Roger Penske added: “Josef Newgarden is a true winner, and we are excited that he will continue as a part of Team Penske for years to come.

“What he did Sunday in the Indianapolis 500 shows how Josef consistently delivers for our team and our partners on the track, and he is just as impressive off the track as well."

Newgarden has 27 wins with Team Penske, as well as 16 pole positions, and his Indy 500 win last weekend propelled him to a feat no other Team Penske driver has managed with the team - winning the Daytona 24 Hours and Indy 500 in the same season.

Newgarden has qualified third for this weekend’s Detroit race, with Colton Herta on pole ahead of last year’s winner Alex Palou.

Attention will now turn to who is next on the silly season list.

Rahal Letterman Lanigan’s Christian Lundgaard is likely to be the biggest name attracting interest from rival teams.

What about the rest of Penske?

Team Penske is notoriously private about details regarding contracts.

Its other two-time champion, Will Power, signed a multi-year deal in 2023, which runs to the end of 2025. The Race's sources indicate that options exist within that deal to extend it for a further year.

Scott McLaughlin signed a multi-year deal in 2022. The Race's sources indicate he is also signed to the team through 2025.