McLaren has confirmed the news via its Twitter page.
The announcement follows speculation that Ricciardo may have taken Sebastian Vettel’s seat at Ferrari, after reports earlier this week stated that the German driver would not be renewing his contract with the prancing horse in 2021 due to disputes about contract terms.
Ricciardo was considered a frontrunner for the spot at Ferrari, competing with McLaren’s Carlos Sainz.
Above: Ricciardo's new McLaren teammate, Lando Norris
However, while McLaren has confirmed Ricciardo will drive for them in 2021, Ferrari has not yet made an official statement regarding Sainz joining the team.
Ricciardo will finish up with current team Renault at the end of the 2020 season after a lacklustre run with the French team.
McLaren are set to adopt Mercedes-AMG engines from 2021 onward. The engine tech has seen a Mercedes driver crowned champion each year since 2014 and the marque win the constructors championship each year over the same period.