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.
Sebastian Coe, chairman of London 2012, says: “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.”
Channel 4 was chosen because it “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,” Coe adds.
LOCOG says 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 organising committee adds: “The commercial value of this deal has raised the bar financially for the Paralympic movement.”