Following the annual conference of the sports governing body in London, the ICC confirmed that the new competition will replace the 50-over Champions Trophy.
"The England and Wales Cricket Board will host the inaugural event in June/July 2017, while the second edition will be held in India in February/March 2021," an ICC statement read.
The ICC had hoped to launch a world Test championship this year but broadcasters locked into lengthy deals curtailed those plans and it was postponed.
The success of the recently completed Champions Trophy in England and Wales, won by India, had led to calls for the event to be retained with its simple format and short duration widely hailed.
The ICC, however, have been determined to create a meaningful championship for the longest form of the game for some time.
"The ICC Champions Trophy in England and Wales was highly acclaimed and appreciated by all," ICC Chief Executive David Richardson said.
"However, the principle of one pinnacle global event for each of the three formats over a four-year cycle is a good one and, as such, the ICC Board has agreed to replace the Champions Trophy with the ICC World Test Championship.
"Now that the ICC World Test Championship has been confirmed, we'll work on the playing conditions and qualification criteria, and will submit these to the ICC Board for approval in due course."
- Sports & Recreation
- Champions Trophy