The Austrian team have also confirmed Spanish
rider Pol Espargaro is staying, leaving Britain's Bradley Smith
without a ride.
Zarco is a two-times Moto2 champion and has been a consistent
frontrunner with the non-factory Tech3 Yamaha team since he
stepped up.
KTM made their MotoGP debut in 2017 and are also-rans in a top
category where Italian brand Ducati provides the main challenge
to major Japanese manufacturers Honda, Yamaha and Suzuki.
"We had to trust in our capability to build a winning bike and
Johann would not come over if he did not see and feel that
trust," said KTM motorsports director Pit Beirer in a statement
at the Spanish Grand Prix on Thursday.
"We feel very responsible now to get that package strong enough
so that he can continue on the level where he is. It is our big
target.
"Johann beating the factory guys on satellite machinery and
consistently qualifying on the front row means he is a strong
fighter with a strong sprit. I’m convinced we can reach the next
level with a rider like Johann with us."
(Reporting by Alan Baldwin in London, editing by Pritha Sarkar)
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