BUDAPEST -- Mike Coughlan, who started the Formula One season as technical director of the struggling Arrows team, is joining McLaren as chief designer next month.

"Obviously I look forward to the challenges ahead," Coughlan said in a McLaren statement at the Hungarian Grand Prix. "Everyone that I have met at McLaren has a great determination and a strong will to win."

Arrows, in danger of losing their rights to compete in the championship, are not competing in Hungary while they negotiate with potential investors.

Coughlan has been absent on 'gardening leave' -- effectively serving out his contract away from the factory -- for some months.

McLaren said technical director Adrian Newey would be in charge of a reinforced technical team, with Coughlan assuming responsibility for the management of the design team when he starts on September 2.

Neil Oatley, who has been at McLaren for 15 years, becomes executive director of engineering and John Sutton joins as principal designer.