Cowes Week Limited (CWL) is to take on responsibility for the Parade Village at the Lendy-sponsored regatta from August.
Previously, the Isle of Wight Council leased the area to an event management company but now CWL will co-ordinate the shoreside activities on the Parade and Esplanade.
CWL will be responsible for the Parade Village, highways arrangements and the famous fireworks display, including crowd management at Princes Green.
Councillor Wayne Whittle, Cabinet member for events, said: “This agreement allows Cowes Week Ltd to deliver the event at a very local level.
“They’re in the heart of the town and have all the expertise to ensure Lendy Cowes Week continues to grow and develop as one of the best events of its kind in the world.
“While withdrawing from its role, the council has agreed that CWL will work with Cowes Business Association and Cowes Town Council to ensure the whole town continues to reap the benefits.”
Kate Johnson, commercial and marketing director for CWL, said: “We’re delighted to have taken on responsibility for the Cowes Parade Village.
“As the Isle of Wight Council withdraws from its role on the Parade, this development ensures CWL can manage one of the key shoreside venues during the regatta, continuing to deliver an experience on Cowes Parade that is popular with both competitors and spectators.
“We look forward to continuing to work with local businesses and stakeholders to achieve this.”