Fernando Alonso's deal to contest the Indy 500 in May will be announced imminently, according to sources.

On January 10, the Spaniard - who failed even to qualify for last year's race at the fabled American oval with McLaren - said he wants to be with "the best possible team" for 2020.

In 2017, Alonso made his Indy 500 debut with a McLaren entry that was supported by top Indycar outfit Andretti Autosport, and he was competitive until he retired with technical problems.

On January 21, McLaren confirmed that Alonso has formally split with McLaren.

Andretti boss Michael Andretti said of the Alonso negotiations recently: "We want it to happen. I just have to find out how to finance it."

Our sources report that Alonso, 38, and Andretti have now reached an agreement and signed a contract, with an announcement scheduled for the next few days.

Interestingly, Andretti uses Honda power, even though Red Bull's Dr Helmut Marko recently ruled out signing Alonso for the future - because of Honda.

"It won't work because our engine partner Honda won't have it either," he said. "Just the name Alonso makes the hair stand up on the back of their necks."