Raikkonen had long been expected to make the switch after leaving Ferrari at the end of the 2009 F1 campaign.

He was linked with a move to former team McLaren but his pay demands were rumoured to have scuppered a potential deal.

And with no other competitive drive on the horizon, Raikkonen has agreed to compete in 12 of the 13 rounds of the 2010 WRC.

The Finn will race for the Citroen Junior Team, joining reigning Junior WRC champion Sebastien Ogier in the Red Bull-backed squad.

He said: "I always wanted to compete in rally, especially in the World Rally Championship at some point in my career.

"Thanks to Red Bull, I have the opportunity to drive the best car of the series with the Citroen C4.

"This is a new but very exciting challenge.

"I am really looking forward to testing the car and taking the start of the first rally."

Raikkonen has signed a one-year contract, leaving the door open for a return to F1 in 2011 providing he can claim a competitive drive.

He added: "We will see how it goes for the future."