Plans to establish an Independent Football Regulator have formally become law after the Football Governance Act received Royal Assent on Monday.
The regulator, which will begin work later this year, will oversee the top five tiers of the professional men's game in England and have powers to ensure clubs are run in a financially sustainable manner.
It will also make clubs more accountable to fans while owners' and directors' tests will become statutory.
Parliament backed the bill to set up the regulator earlier this month and it has now completed its journey into law with approval from the King.
Prime Minister Keir Starmer said: "This is a proud and defining moment for English football.
"As someone who has loved the game all my life, I know just how deeply it runs through our communities. It's where memories are made, and generations come together.
"Our landmark Football Governance Act delivers on the promise we made to fans. It will protect the clubs they cherish, and the vital role they play in our economy.
"Through our 'Plan for Change', we are ushering in a stronger, fairer future for the game we all love."
The plans came from a fan-led review, established by the previous Government in 2021 after a number of clubs ran into serious financial difficulties, and also after the controversial attempt to establish a breakaway European Super League.
A news release from the Department for Culture, Media and Sport has referred to the creation of the regulator as a "landmark moment for the game" and the "biggest reform to football governance in a generation".
Further powers will prevent clubs joining closed-shop competitions and breakaway leagues, and also ensure a fair financial distribution between leagues.
Lisa Nandy, Secretary of State for Culture, Media and Sport, said: "Football clubs have been built and sustained by fans for generations, but too often they have had nowhere to turn when their clubs have faced crisis.
"Today that changes as this act will give hope and assurance to people, with the regulator working to protect clubs in towns and cities all over the country, where football clubs mean so much, to so many."
The process of appointing a senior leadership team is ongoing with an interim chief executive and board set to be announced shortly. A transition team, the Shadow Football Regulator, has been in place since last year to begin the process.
There has already been engagement with the industry and fans groups and this will continue as rules and regulations are established.
Football Supporters' Association chief executive Kevin Miles said: "This is an historic moment for football in this country and we are very proud that the FSA was at the heart of change, helping to bring in laws which can help protect the clubs we love from the worst excesses of owners throughout the professional game."
