The squad is currently in its third year in the NASCAR Sprint Cup Series after making its debut simultaneously with Toyota in 2007. Waltrip's team's first victory came in May this year when David Reutimann claimed victory at Charlotte.
In 2010 the team will field two full-time cars for Reutimann and Martin Truex Jr, while Michael Waltrip is set to compete in a limited number of races, starting with the Daytona 500.
The team has also renewed its technical partnership with JTG Daugherty, which will continue to run cars built by MWR for Australian Marcos Ambrose for the next two years.
"Simply put, MWR would not exist without Toyota," co-owner Michael Waltrip said. "Toyota put us on the map in 2007 and that's why I was so proud to deliver TRD's engine facility its first NASCAR Sprint Cup win.
"For MWR to know it has Toyota's support through the 2012 season is phenomenal and delivers our organisation what every team in the garage desires - stability."
The team will continue to receive engines from Toyota Racing Development, which also provides units to Red Bull among others. TRD's president Lee White is optimistic about the future of Toyota's partnership with Waltrip.
"Michael Waltrip Racing was a part of Toyota's 'freshman class' and they have shown tremendous progress, as well as dedication to Toyota's goal of winning the manufacturers' championship," said White.
"Michael has always been a tremendous spokesperson for Toyota and continues to impress all of us with the moves he is making to elevate MWR to a championship calibre organisation."
MWR's cars look set to finish inside the top 35 in the owners' standings, as should Ambrose, who is currently 18th in the points on his first full season in the Sprint Cup.
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