James Allen is reporting that the new team on the grid for next year will be Lotus. We already knew it would be one of three possibilities, but the FIA have made their decision and picked the Lotus F1 team

Things of note:

• The team will be using Cosworth engines.
• Mike Gascoyne will be the team's technical director.
• The FIA highly regarded the Team Formerly Known As BMW's entry but were still worried about their uncertain future.

Additionally Reuters have noted that the Malaysian government are pleased to announce that, "The cars will be made in Malaysia, by Malaysians." and that a manufacturing and technical centre will be purpose built at Malaysia's Sepang International Circuit.

Update: In a somewhat related story, AP are reporting that BMW have miraculously managed to find a buyer this morning. The name behind the purchase are the Swiss-based Qadbak Investments.

It's not yet clear whether this means we will see a 28 car grid in 2010 or if entry is conditional on another team exiting the sport.