Under the agreement, Armstrong will serve as an on-air personality across Discovery's networks in the United States and around the world.
During the remainder of the 2004 cycling season, Discovery will sponsor the team with the placement of the Discovery Channel logo on the team's jerseys.
Armstrong will attempt to win his sixth consecutive Tour de France next month and also announced today he will race in next year's Tour de France.
"Lance is a role model known for determination, integrity and a spirit that never gives up. There is no better ambassador for quality and trusted information than Lance Armstrong," said Judith A. McHale, president and chief executive officer, Discovery Communications.
"I'm truly excited about our team's partnership with Discovery Communications and their long-term commitment to the sport of cycling," said Armstrong.
Armstrong will also be featured in programming on a number of Discovery Networks, including the Discovery Channel, Travel Channel, The Science Channel as well as Discovery's health channel, FitTV.