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The League of Ireland will revert to being a 10-team, two-division format from the 2018 season, the FAI has confirmed.
The Premier Clubs Alliance (PCA) had proposed the switch to Irish football's governing body and the latter has now ratified it, with the changes coming in the season after next.
To enable the changes to take place, only the First Division champions will be promoted after next campaign while the bottom three teams in the top flight will be relegated to the second tier.
A statement from the FAI read: "Following a proposal from the Premier Clubs Alliance (PCA), the Board of the Football Association of Ireland has ratified the SSE Airtricity League switching to a 10-team, two division structure from the 2018 season.
"The FAI has been in discussions with the PCA, and their legal representative Michael Cush SC, over recent months regarding all aspects of the SSE Airtricity League.
"At the end of the 2017 season, the First Division champions will be promoted, while the bottom three teams in the Premier Division will be relegated.
"Over the last two years, the FAI Board has placed the future of the SSE Airtricity League at the top of its list of priorities by commissioning two independent reports, to look at the overall structure of the League (Consultation Process Report) and the League as a Brand (Branding Review Report).
"From the Consultation Process Report, a number of recommendations have started to be implemented, including:
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