Real Madrid won the 2022 Club World Cup in Morocco last month, beating Al-Hilal 5-3 in the final of the seven-team tournament.
In addition, the FIFA Council also unanimously approved plans for a new annual competition between the champions of its six confederations.
The first competition will be held next year and will feature the Champions League winners playing the winners of the international confederations play-offs.
This competition will replace the current seven-team format of the Club World Cup, meaning the 2023 Club World Cup in Saudi Arabia will be the last in the current format.
The new - and as yet unnamed - competition will begin in 2024, followed by the reworked Club World Cup a year later.