Schrader, a two-time winner of the non-championship event that serves as a warm up for the season-opening Daytona 500, will drive the #82 car that will be raced a week later by Scott Speed.
Due to the new selection criteria for the Bud Shootout this year, the 54-year-old became eligible to take part in the event by virtue of his past-winner status. Speed, who ranked 35th on his rookie season in the Sprint Cup last year, isn't eligible for the event.
Red Bull will thus have both its cars in the race, as Brian Vickers gets a place by being one of the 12 drivers in the Chase for the Sprint Cup in 2009.
"Kenny's desire and dedication to NASCAR has always made him a favourite among fans and throughout the garage area," said Red Bull general manager Jay Frye. "We're excited he approached us with the idea and are looking forward to giving him the opportunity he deserves and has earned."
Schrader, who last competed in a Sprint Cup-level event at Phoenix in 2008, won the Bud Shootout back-to-back in 1989 and 1990 while racing for Hendrick Motorsports. He looks forward to the opportunity to race in the event once again.
"I am tremendously excited to be in a top-calibre car," said Schrader. "Pairing up with a strong team-mate like Brian Vickers and the whole Red Bull organisation for this event has me on cloud nine."
Speed will drive the #82 car on the same day that the Shootout takes place, as he takes part in the qualifying session for the Daytona 500. Once Schrader races in the Shootout, Speed will be back in the car for the Gatorade Duels and the first points-paying race of the season.
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