England will host the second Twenty20 World Championship in June 2009, the ICC also decided to limit the expansion of Twenty20 by restricting sides to a maximum of three home matches per season.
"The England and Wales Cricket Board should be very pleased with the outcome of these negotiations," said South Africa Chairman Ray Mali.
"They produced an excellent submission to host both the ICC Cricket World Cup and the Twenty20 World Championship and they have earned the right to host both events.
"A lot of credit must go to David Morgan for the astute manner in which he handled some very complex discussions. England and Wales will be a fitting venue for the ICC Twenty20 World Championship at the climax of our centenary year in 2009."
David Morgan, Chairman of the England and Wales Cricket Board said that event would be the centrepiece of the summer calendar.
"Twenty20 cricket finds its roots in England and Wales so I think it is fitting that we will host this World Championship. We have a wonderful opportunity to build our international calendar around this showpiece occasion and we will make sure that it takes place in June in the heart of our cricket season," said Mr Morgan.
"The full support of the ICC Board for the staging of an important event in England is a clear indication of the prominent place that the ECB continues to hold in international cricket."
The frequency of the ICC Twenty20 World Championship beyond 2009 will be determined once an evaluation of the initial events has been undertaken.
As well as harnessing the international enthusiasm for Twenty20 cricket by unanimously agreeing to introduce a Twenty20 World Championship, the ICC Board has also put controls on the format's expansion by limiting sides to a maximum of three home matches per season.
The decisions taken during a meeting of the ICC Board in Dubai on Sunday are subject to ratification at the ICC's Annual Conference in London in July.
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