Earnhardt announced in May that he was leaving Dale Earnhardt Inc. following a dispute with DEI's current leadership of his stepmother Teresa Earnhardt and Max Seigel.
Since then, Earnhardt has been linked with several teams but on Wednesday he said he was going with Hendrick next year.
"We talked with many teams but one stood out above the rest," Earnhardt said. "I feel like this decision will give me the opportunity to win and hopefully I can give the fans what they expect and deserve."
Earnhardt has driven for DEI since 1996, winning 17 races and finishing in the top 10 114 times in 269 starts. He was the Busch Series titles winner in 1998 and 1999.