Wrestling, which is one of the rare sports to have transcended the ancient and modern Olympics, won in the first round of voting with 49 of the 95 votes cast.
The joint bid of baseball/softball was second with 24 votes and squash received 22.
The result sees wrestling assured of appearing at both the 2020 - which is to be hosted by Tokyo - and the 2024 Summer Olympics.
It marks a remarkable turnaround in fortunes for wrestling which was dropped from the Olympic programme in February this year by the 15-person IOC Executive Board but which provoked an unprecedented backlash.
Nenad Lalovic, who has led the sweeping reforms and campaign since he was installed as president after his predecessor was forced out because of the humiliation of being dropped, had told the members in Sunday's presentation how important the decision would be for the sport.
"It would be an understatement to say that today is the most important day in the 3,000 years of our existence," said the Serbian.
Lalovic and his team gave a great roar when they heard the result announced by IOC President Jacques Rogge, and he then said that it would be a decision the IOC would not regret.
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