The deal will deliver over 150 hours of television coverage of the London 2012 Paralympic Games. Channel 4 has also agreed to be completely rebranded with a Paralympic theme after the Games finish.
Chairman of London 2012 Sebastian Coe commented: "The eyes of the world will be focused on the Paralympic Games - the world's second biggest multi-sport event - in London in 2012.
"We will deliver a spectacular sporting showcase for the world's greatest Paralympic athletes, and will use the power of Paralympic sport to raise awareness; challenge stereotypes; inspire understanding and communicate the Paralympic values of determination, courage, inspiration and equality.
"We are absolutely delighted to appoint Channel 4 as our broadcast partner in the UK. Channel 4 shares our vision for the Paralympic Games, has a very strong appeal to young people, and will play a hugely important role in increasing public engagement and involvement in Paralympic sport in this country.
"We are confident that the quality and depth of the broadcast coverage provided by Channel 4 not just for the 12 days of sport in 2012, but in the two and a half years leading up to the Games, will inspire disabled people of all ages to take up sport and be a catalyst for continued change in public attitudes towards disability."
The statement concludes: "The commercial value of this deal has raised the bar financially for the Paralympic movement."