Greg Murphy Racing will expand and move into the Fujitsu V8 Supercar Development Series in 2007.
The team, which was established in 1997 and has run cars in the Formula Holden and Carrera Cup categories over the past 10 seasons, is in the middle of putting together a two-car team to compete in the series next year.
GMR will use the VZ Commodores currently being used by Tasman Motorsport, which will be phased out next year in the main series by the arrival of the allnew VE Commodore.
Based out of the team's current workshop in Braeside, Melbourne, GMR will continue to be run under team principal Kevin Murphy.
Tasmanian driver Sam Walter has signed to drive one car, while negotiations continue with other parties for the second seat.
Walter, 28, competed in the Lotus Trophy series from 2004 to 2006 after initially beginning his career in karting and Formula Vee.
Finishing fifth in the Lotus Trophy in 2005, Walter took victory in the Lotus 500 endurance event early this year.
He will be in action at Symmons Plains this weekend, driving a 300kilowatt HSV GTS in the GTP championship support events.
"Being with GMR has to be one of the best decisions I've made in my career," said the Tasmanian, who will take over the Commodore currently being raced by Jason Richards in the main V8 Supercar Championship Series.
"With the development the cars have had at Tasman, it's going to be a major help for me as I learn about V8 Supercars.
"I'm just hoping to be consistent, finish every race and use the experience of the team to help me get up to speed.
"It's quite a jump from the Lotus to the V8 Supercar, but I've had the opportunity to have a private test in an older model car and already started to learn about the cars, how they work and what is required to drive them."
GMR Team Principal Kevin Murphy said that the team's entry into the Fujitsu V8 Supercar Series was a logical way to grow the GMR business.
"The team has been quite successful in the past in the categories it has competed in and this is the next step," Murphy said.
"Our intention is to run a second car and we are in negotiations with three or four other parties who have expressed interest. We'll look for who fits best for us in the long term.
"Sam has managed to achieve some consistent results during his time in the lower categories and showed good signs in his private test in an older model V8 Supercar, so we're keen to bring him on board and help him develop."
GMR captured two Carrera Cup championships in 2004 with Alex Davison and 2005 with Fabian Coulthard in addition to victories in Formula Holden with a variety of drivers.
It will remain involved in the Carrera Cup in 2007, with plans to field two Porsche 997 machines in the series.