MOORESVILLE, N.C. (AP) — Penske Racing has hired one NASCAR driver from South Bend to replace another.

The hiring Wednesday of David Stremme to replace Daytona 500 winner Ryan Newman has long been expected. Newman will leave the No. 12 Dodge at the end of the season to drive for the new team of a third Hoosier, Tony Stewart.

Stremme has been under contract as a test driver for Penske waiting for an open Sprint Cup seat.

"We're pleased to have David join Penske Racing as the driver of the No. 12," Roger Penske said. "His past accomplishments and current experience as our NASCAR test driver, as well as his character and desire for success, make him a good fit into our culture."

Stremme spent two seasons driving for Chip Ganassi Racing in the Sprint Cup Series, but Ganassi let him go at the end of last year to sign Dario Franchitti.

Stremme passed on several sub-par Cup rides, choosing instead to sit the year out and run most of the second-tier Nationwide Series schedule for Rusty Wallace. He's ranked 12th in the Nationwide standings, with 13 top-10 finishes in his 24 starts.

Penske hired him in April as a test driver, helping Newman, Kurt Busch and Sam Hornish Jr. accelerate their car development.

"To be a part of Penske Racing's 40-plus-year legacy has been a longtime dream of mine," Stremme said. "I cannot wait to join my new teammates and work to get the No. 12 into the 2009 Chase."

Alltel will remain sponsor of the No. 12.