Juri Vips has kept his seat in Formula 2 despite being sacked by backers Red Bull for using a racist slur.
Vips was dropped from Red Bull’s driver programme and as their Formula 1 test and reserve driver after using offensive language during an online game.
The Estonian’s Hitech team have decided to retain him so he can “demonstrate genuine and sincere remorse”.
F2 said the decision was “surprising” and “not one we would have taken.”
Hitech boss Oliver Oakes said the team had “never condoned racism or offensive behaviour in any forms”.
But he added: “If we live in a society where no one can make a mistake, then genuinely apologise, have the chance for redemption and learn from it, what does it say about society?”
Oakes said that having his contact terminated by Red Bull was “a crushing experience” for Vips and “a deservedly severe punishment”.
Vips issued a statement last week apologising for using the slur, saying his language had been “entirely unacceptable and does not portray the values and principles I hold”.
Oakes’ statement added: “He needs to make lasting changes and not just short-term, virtue-signalling comments.
“While this may not satisfy everyone, I believe we all deserve a second chance in life, but never a third. Juri’s self-respect, his reputation and his career are now firmly in his hands.”