The 27-year-old will contest the North West 200, Isle of Man TT and Ulster Grand Prix, plus all rounds of the British Supersport Championship in 2013.
“Joining a team like Milwaukee Yamaha means that on the roads all I have to think about is about going as fast as possible. We will be able to do lots of testing able to get up to speed before the first race, so this is a great team to get involved in,” said Dunlop.
“I would not have taken the ride if I did not think I could win a TT, especially on the Yamaha R6 which is my favourite bike to ride but there’s no reason why I can’t challenge for a win on the Superbike too.
“Racing in Supersport is going to be different because of the new tyres but I think I can do a good job. We have all the tools and I am looking forward to it.”