Fans of SEGA and Rare unite? In a surprise announcement this week, Banjo and Kazooie will be making an appearance in the upcoming Sonic & SEGA All-Stars Racing game, (only on the Xbox 360 version that is.) Plus, as if Banjo wasn’t enough, Xbox 360 Avatar support will also be featured in the game.

Just a side note, SEGA claims that this will be the first racing game to have Avatar support, which means that we will probably not be seeing the upcoming XBLA title – Joy Ride until after this game releases in February.

From the press release,

In a frantic battle to the checkered flag, Sonic and friends speed around tracks set in medieval castle ramparts, lush rainforests and bustling cities, all taken from the visually rich and varied universes of Sonic and SEGA. Fan favorites such as Dr. Eggman, Tails, AiAi, Amigo and many more will join Sonic in their custom built vehicles, revving their engines and jostling to stay ahead of the pack. Each character will speed around the track in cars, planes, motorbikes, and in Aiai’s case – a banana mobile! Secret short cuts, swift handling and avoiding strategically placed obstacles are certainly the best way to get to the top of the podium.

But winning is only part of the fun in Sonic & SEGA All-Stars Racing! Each character has a specific All Star move – such as Super Sonic, Banana Blitz and Tails Tornado – that allows a quick way for competitors to get back into the race! Power ups and weapons can also be collected around the tracks and used against the opposition to ensure they don’t become a threat to that number one position.

Battle it out in single or multiplayer mode, allowing up to four friends to race in frantic split-screen action, or up to eight players to compete online in the ultimate racing showdown.

Can Amigo scramble Eggman? Will AiAi say bye-bye to Tails? Are you gonna be faster than Sonic? The race will start in 2010…