Zaugg, who lives in Cape Town and is currently competing in Europe in the Italian Formula Renault Championship and the World Series by Renault, will join 21-year-old Stephen Simpson in Team South Africa.
Ms Dana Cooper, CEO of Team South Africa, expressed her delight at acquiring the services of the exciting new prospect.
"Adrian Zaugg is a truly wonderful 'find' for South Africa. He is a very talented, committed young man who has already achieved a great deal in motor sport in a short space of time. We have had our eye on him for some time and are delighted he has agreed to join our team.
"We are also very appreciative to his sponsor Red Bull for allowing Adrian to compete for South Africa in at least three A1GP races, to fit in with his various Red Bull commitments"
After two days' of official A1GP testing at Silverstone circuit in Northamptonshire in England this week, in which 19 of 24 national teams expected to contest this year's A1GP series took part, Zaugg earned his place on the team with an impressive performance in his first official
outing in the 3,5-litre V8-engined A1GP car.
"All of the drivers we tested did a good job and I can honestly say that any one of them would be an asset to our team," said Team South Africa technical and sporting manager Mike Carroll.
"A1GP is currently looking at a rookie programme, where teams will be able to run a driver who has competed in three or less A1GP races in a special rookie session at each round of the A1GP World Cup of Motorsport.
"We will certainly support this programme, which will give additional promising young South African drivers an opportunity to showcase their talents in a global environment."
Zaugg is a previous winner of the Formula BMW scholarship. He only started racing six years ago when his Swiss father bought him a kart.
He earned a place in the Red Bull Junior Team driver programme in 2005 and has been competing under the South African flag in the Italian Formula Renault championship, in which he is currently lying second.
He also made his debut in round six of the World Series by Renault at the Nurburgring in Germany, finishing sixth.