From 2013, the broadcaster will also screen the Derby and Royal Ascot, becoming the new exclusive home for racing for four years.
The BBC's director of sport Barbara Slater insisted that the corporation put in as "competitive a bid as possible" to keep the rights.
Slater added that despite being "disappointed" over losing the rights, the BBC is "pleased that all the races in the contract remain free to air".
Richard FitzGerald, who is chief executive of rights negotiating team Racecourse Media Group (RMG), thanked the BBC, saying that the corporation was a "fantastic partner for British racing, and helped the sport to grow its attendances and TV audience in recent times".
FitzGerald added: "This new deal will not only deliver increased revenues for British racing, but with all of our sport's crown jewels in its portfolio, Channel 4 offers a compelling vision to innovate the way racing is broadcast."
Channel 4 already gives the sport extensive coverage and will continue to televise major races from Newmarket, Sandown Park, York, Goodwood and Haydock Park.
Network sports editor Jamie Aitchison commented: "This is an opportunity for us to work together to grow the sport, painting the full picture of both the flat and jumps seasons to attract new viewers whilst rewarding those loyal viewers we value so highly."
This year's Grand National will air on BBC One for the last time on April 14 before the rights are handed over. The Derby and Royal Ascot will follow in June.
Due to budget cuts, the BBC has already halved its commitment to Formula 1.
The corporation lost the FA Cup and England rights to ITV in 2007, and has not since attempted to retrieve them.