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BBC said:Tokyo has been chosen to host the 2020 Olympic and Paralympic Games ahead of Istanbul and Madrid.
The Japanese capital won a final round of voting by International Olympic Committee (IOC) members in Buenos Aires to beat Istanbul by 60 votes to 36.
Madrid had earlier been eliminated in a first-round ballot.
The announcement was met with jubilant scenes in Japan, as Tokyo prepares to host the event for the first time since 1964.
When IOC president Jacques Rogge - who will retire after 12 years in the role on Tuesday - announced the winning city, the Tokyo delegation jumped to their feet in celebration and waved the Japan flag.
A number of them were overcome with emotion and wept, following two years of intense lobbying.
"I would like to thank everyone in the Olympic movement and we will host a wonderful Olympic Games," a delighted Prime Minster Shinzo Abe said.
Bid leader Tsunekazu Takeda added: "It is a great honour that Tokyo has been chosen. The first thing I will do when I return is to thank all of Japan."
London mayor Boris Johnson sent "huge congratulations to Tokyo for winning the honour of hosting the greatest sporting spectacular on the planet".
He continued: "I am sure that, like London, your great city will put on an extraordinary event. This is a magical moment of celebration to savour before the years of hard work ahead."
The decision means Tokyo - which campaigned with the message that "the Olympics will be safe in our hands" - will become the first Asian city to host the Games twice.
They were also awarded the event in 1940 but the Games were cancelled because of World War II.
Not really that surprising that Tokyo was picked ahead of Istanbul and Madrid. Madrid don't have the money to spend and they were trying to push for a cheap games where they wouldn't have to spend much money on new stadiums. Would have ended up like Athens in 2004 which was terrible. Turkey was never going to win it because of the safety aspect, they wouldn't want to take another risk with Rio being the one before it. Tokyo is the safe choice and I look forward to seeing what they can create.