The Frenchman has agreed with the stable M-Sport Ford to drive a hybrid car, writes WRC.
The focus is on the French duel when 47-year-old Loeb with nine World Cup titles is pitted against 38-year-old Sebastien Ogier who won his eighth title last month.
The French star drivers have won 17 of the last 18 championships.
It has been rumored in the rally world after Loeb tested the new car in recent months.
- It was a pleasure to discover the new technology found in the Puma Rally1 cars.
I think it's quite similar to the 2017 cars but with a hybrid system on it, says Loeb.
Will drive the Dakar Rally
Before it's time for the rally in Monaco, Loeb will compete in the Dakar Rally in Saudi Arabia.
- I still think I can challenge.
Although the Monte Carlo rally is not the easiest to start with, there are some really difficult sections, I have good memories from the rally and there is always a good atmosphere around the competition, says Loeb who has seven wins in the competition.
Loeb's most recent World Rally Championship title was in 2012. He won nine in a row from 2004.