The pop trio, who will release their new single 'Freedom' on September 5, announced details of a joint-venture deal between Sony RCA and Crown MD earlier today - a month after reports first suggested the move.
"With Island Records, we enjoyed an extremely long and successful relationship, establishing Sugababes as a band whose name has for the past decade become a bi-word throughout Europe for hit records," Mark Hargreaves of Crown explained in statement.
"Our decision to strike a deal with Sony came because it was important for us to treat this as a new chapter in the band's lifespan and to factor in all of the key elements that are essential to make any signing the right one; a passion for the music, enthusiasm for the talent, and a belief in the team to deliver. In Sony, we found all of these qualities."
Sony Music's president Nick Gatfield added: "When we learned of the chance to sign Sugababes, we saw a great opportunity to work with Crown and continue to build on the band's legacy of successful hit-making.
"I believe we have an exciting future together operating through a new joint-venture model which incorporates the excellent creative skills of Mark Hargreaves and Sarah Stennett at Crown combined with the marketing and promotional assets that Charlie Lycett and the RCA team have to offer."
Sugababes will perform their new single during an appearance at this weekend's T4 On The Beach in Weston-super-Mare.
A new album is expected to be released later this year.
Listen to a clip of 'Freedom' by Sugababes below: