The deal replaces the news provider's existing contract with the channel and runs from now until 2007.
It is the longest supplier contract the channel has awarded to date, and comes soon after Channel 4's new chief executive Mark Thompson announced a raft of job cuts and closed its FilmFour production unit.
Tim Gardam, Channel 4 director of programmes, said: "[ITN] has successfully reinvented the programme, keeping it fresh and contemporary. It has held on to its core purpose: Channel 4 News is uncompromisingly intelligent and it has a determined sense of what is important and the agenda that will shape Britain and the world."
The move also shows Channel 4's commitment to its news show, which is aired every weekday and is anchored by Jon Snow.
Snow said: "In an environment of relentless commercial and competitive pressures, it's both remarkable and heartening to see Channel 4 raising the flag for innovative public service broadcasting. This deal does just that, and I'm really proud to be part of that."
The amount the broadcaster is paying ITN for one show a day represents a greater investment in news than that made by ITV, which last year agreed to pay ITN around £35m over six years for its entire news output.
ITN was forced to discount its offer to ITV last year when it was challenged by a consortium backed by Sky News, which said it could undercut ITN's bid.
ITN had previously charged over £40m for the contract, but was accused of using the deal to subsidise other interests such as its 24-hour cable news channel.
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