Loeb, who won the Latvian round of the championship in his first full season last year, will be again joined by Swedish driver Timmy Hansen in a pair of new 2017-specification Peugeot 208 WRX Supercars, run by the Hansen team.
Hansen’s younger brother Kevin, who won the European Rallycross Championship last season, will also graduate to World RX full time in a 2016 version of the car as an individual entrant.
“I believe I learnt a great deal in the course of my first full rallycross season,” he said.
“I’ve obviously set my sights higher this time round and I hope the 2017 version of the 208 WRX will enable us to challenge for victory.
“Given the stiffer competition we face, it won’t be easy but I am determined to add to my record in this discipline.”
Four manufacturer backed teams will enter World RX this season, with Ford continuing to partner Ken Block’s Hoonigan Racing Division, Audi pledging its support to Mattias Ekstrom’s world championship winning EKS team and two-time champion Petter Solberg working with Volkswagen.
“We know we can count on the services of two battle-hardened drivers since Sebastien now has a complete season’s experience under his belt,” said Peugeot Sport director, Bruno Famin.
“That said, we know very well that the level of the World Rallycross Championship is improving all the time. It’s going to be a quality season.”
Peugeot remains responsible for the development of the 208 Supercars in Velizy near Paris, while Kenneth Hansen’s Sweden-based team will continue to run them on events.
Kevin Hansen, who twice finished fourth in selected World RX outings last year, said: “I’m very happy to be a full-fledged world rallycross driver at last.
“I would like to find the feeling I had last year behind the wheel of the 208 WRX and then build on that.
“I will do my very best and try to eke out a place amongst the sport’s elite.”