Channel 4 is to open a new "national headquarters" outside London and move 300 jobs out of the capital.
The announcement is a partial victory for the campaign to bring the broadcaster to a region such as the West Midlands.
But Channel 4's main headquarters will still be in central London.
It means the broadcaster has resisted calls for a wholesale move away from its current base in the capital.
Ministers had previously threatened to pass legislation forcing Channel 4 to relocate to a region such as the West Midlands - but have now accepted a compromise put forward by the broadcaster's managers.
The plan set out by Channel 4 Chief Executive Alex Mahon includes:
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Creating a National Headquarters outside London alongside two new smaller creative "hubs" in 2019.
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The three new sites will be home to 300 Channel 4 jobs including "key creative decision makers . Channel 4 says the number could increase over time
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Channel 4’s spend on Nations & Regions content to significantly increase from 35% to 50% of main channel UK commissions by 2023 – an increase of more than £250m more in total
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There will be a new Channel 4 News studio and bureaux in the nations of England and regions such as Scotland, Wales or Northern Ireland.
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Channel 4 News will have co-anchors, one based in London and the other in a region or nation
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Towns, cities and regions will be invited to explain why they should be the site of the National HQ or a "hub", with bids accepted from April
Ms Mahon said: “As a public service broadcaster with diversity in its DNA, Channel 4 has a unique ability to reflect our society. This is a significant and exciting moment of change for Channel 4 as we evolve to ensure we are best suited to serve all of the UK.
“With this new strategy we will go even further to make sure that people right across the UK are represented on screen and in the make up of our own organisation – and it will also build on what we already do to support creative businesses, jobs and economies in the Nations & Regions.”
The National HQ will be home to a new studio, with "the potential to be a base for daily programmes" according to Channel 4.
It will also house a new digital production unit, creating short digital content targeted at young audiences.
And the National HQ, as well as the existing London headquarters, will regularly host Channel 4 executive and Board meetings.
West Midlands Mayor Andy Street is now expected to lead a campaign making the case for putting the National Headquarters in the West Midlands.
There is no certainty that Birmingham or the West Midlands will benefit from the changes, as other cities and regions including Leeds and Greater Manchester are likely to submit proposals.
The announcement does fall short of the full relocation Mr Street had been hoping for. The Mayor, along with council leaders, MPs, community arts projects, business leaders and senior figures from the cultural industries, had been campaigning for Channel Four to leave its London base and move to Birmingham instead.
The campaign was backed by BirminghamLive.
Mr Street said: "I welcome this first stage statement . It’s not everything we might have hoped for, but it is a very decisive commitment to the regions including a new national headquarters, and of course something better than I’d hoped if I’m honest.
"News will be moved to be co-produced outside London. It’s a big commitment, it talks about 300 jobs.
"We’ve now got to enter the second stage of this competition with great confidence and convince Channel 4 this is a place where they can thrive."
It had long been thought that Channel 4 would offer a partial move as an alternative to a full relocation - an option the West Midlands leaders hoped to avoid, but which is now the only one on offer.
The attitude of the Government was crucial. The Conservative Party general election manifesto stated that a Tory government would ensure Channel 4 moved out of London.
Former Culture Secretary Karen Bradley had told the House of Commons that the Government may pass laws requiring Channel 4 to move , if it refused to do so voluntarily.
And Culture Secretary Matt Hancock, her successor, had reportedly ordered officials to begin drafting the legislation .
But the Government has backed down and no longer plans to force Channel 4 to move.
It's understood that while Mr Hancock had supported a full relocation, others in government feared that it would bankrupt the broadcaster.
Mr Hancock said: “We have long been committed to Channel 4 moving out of London.
"I’m delighted Channel 4 have decided, under the strong new leadership of Alex Mahon, to establish the new national HQ outside of London, with 300 jobs, including key creative decision makers, to be based in the regions, rising over time.
"I know that many parts of the UK will be excited to pitch to be the new home of C4.
"We want all parts of Britain to benefit from our amazing creative industries, and C4’s leadership with a new national HQ outside of London is an important part of building a Britain that works for everyone.”
