The Virgin team will join fellow new entrants Lotus, Campos GP and US F1 as one of four new teams for the 2010 season.
Virgin decided to take a stake in Manor following its sponsorship of the Brawn GP team last season.
The switch comes a month after Brawn sold a majority stake to Mercedes.
The German car maker bought a 75.1% controlling interest in Brawn, which will be rebranded as the Mercedes GP team from next season.
Mercedes already had a working relationship with Brawn, providing the engine used in the car driven by world champion Jenson Button last season.
The car marque also relinquished its 40% stake in the Vodafone McLaren Mercedes F1 team but remains its engine supplier for the next six seasons.