LONDON (Reuters) – The Red Bull-owned Toro Rosso team will use year-old Ferrari engines in Formula One next season, both sides said on Friday.

Toro Rosso used Renault power units this year and the switch was expected after Red Bull fell out with the French carmaker.

“Toro Rosso and Scuderia Ferrari have reached an agreement that will see our team use the current Ferrari power unit in the 2016 Formula One season,” they said in a joint statement.

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Renault will be returning as a full works team next year after taking over Lotus while Red Bull will use an engine provided by Renault but with the branding of the team’s new partner, luxury watchmaker Tag Heuer.

(Reporting by Alan Baldwin, editing by Martyn Herman)