Schumacher made his debut in the season this year, scoring his first race win and podium at the Sprint Race in Hungary.
Prema's 2020 line-up sees both drivers enter as part of the Ferrari Drivers' Academy. Schumacher tested for Ferrari in Bahrain earlier this year.
With one round remaining in the 2019 championship, the German sits 12th in the driers' championship, five points down on Callum Ilott in 11th.
“I am entering my second F2 year with very valuable lessons learned, both in the way to handle the car and tyres but also to work in a bigger team environment.
“I will certainly build up on this experience when I go into a season that I cannot wait to start. Teaming up again with PREMA seems only natural, since we work and grow together since so long now, and I can only thank them for again giving their trust in me. I'll definitely give anything to prove them right.”
"I am really happy to move up to Formula 2 as it is the final step before Formula 1 and obviously a very important one," Shwarztan said. "On the other hand, I am delighted to continue my relationship with PREMA Racing.
"It will be the third consecutive year for me with the team, so we know each other well and there is great chemistry. Our goal is to win the championship as this year we showed that, even with a new car, a lot of unknowns and high-level competitors, it is possible to be at the front right away.
“I’m sure we have what it takes to do it all again in 2020. I will do my best to learn the tires and car as quickly as possible so we will be at the top of our game from the very beginning.
"I want to thank Ferrari, the Ferrari Driver Academy and SMP Racing for helping and supporting me. I hope to reward their continued trust with some great results.”
Bahrain International Circuit - Winter testing