"After studying the different offers I've received, I've opted for Astana because it is a totally new project which is going to put together a great team for me for the Tour de France," Contador said.
Contador found himself without a team when his Discovery Channel outfit decided to disband after failing to secure a new sponsor.
But the decision of former Discovery Channel team manager Johan Bruyneel to take charge of the Astana project helped convince the Spaniard to sign for the team.
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Bruyneel said he was delighted Contador would lead his new team.
"The new Astana project is a magnificent one and with him and the other riders that formed the base of my previous team we hope to present a great Astana team on the start line of the next Tour de France," he said.
Astana decided to revamp the team structure after becoming embroiled in a series of doping scandal's this season.
The team were forced to pull out of the Tour de France after pre-race favourite Kazakh Alexander Vinokourov tested positive for blood doping following his victory in the 13th stage. The Kazakh denies any wrongdoing.
His compatriot Andrey Kashechkin also tested positive for blood doping following a random test in August. Both riders were sacked by the team.
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