The former Formula One driver earned his first series win in Long Beach this year, giving Foyt its first victory in 11 years, and went on to claim pole position in Houston.
Meanwhile, the team also announced that engineer Don Halliday and performance engineer Raul Prados will also remain with the team.
Sato is scheduled to test with the team at Sebring on Wednesday.
2014 IndyCar line-up (Confirmed drivers)
AJ Foyt Racing (Honda)
Andretti Autosport (Honda)
Marco Andretti/Carlos Munoz/James Hinchcliffe/Ryan Hunter-Reay
Bryan Herta Autosport (Honda)
Chip Ganassi Racing (Chevy)
Scott Dixon/Tony Kanaan/Ryan Briscoe/Charlie Kimball
Dale Coyne Racing (Honda)
Ed Carpenter Racing (Chevy)
Ed Carpenter (ovals)/Mike Conway (road/street)
KV Racing (Chevy)
Panther Racing (Chevy)
Rahal Letterman Racing (Honda)
Sarah Fisher Hartman (Honda)
Schmidt Peterson (Honda)
Mikhail Aleshin/Simon Pagenaud
Team Penske (Chevy)
Juan Pablo Montoya/Helio Castroneves/Will Power
|Juan-Pablo Montoya, Team Penske. (Photo: Mike Finnegan)|