The Hungarian capital was the only candidate under a new model launched by the IAAF which abolished the traditional bid campaign and instead introduced a consultation process.
IAAF President Sebastian Coe had announced in July that Budapest was their preferred choice and that was rubber-stamped today by the ruling Council here.
The main venue of the event will be a 40 000-seat new National Athletics Centre that is currently in the planning phase.
Following the Championships, temporary seating will be removed and only 15 000 seats will remain to fill the void of athletics stadiums in country.
The venue will serve as a huge boost to both competitive and leisure sports as well as youth development, Budapest officials claim.
"The victory of this bid is a recognition of all the hard work and success from the past decades in Hungary," Budapest 2023 chief executive Marton Gyulai said.
"The World Athletics Championships is an outstanding opportunity for the entire central European region and for millions of youngsters to establish closer ties with the queen of sports."