The announcement marks the first name change for the channel since its launch in 1955.
The move comes at a crucial time for the network. ITV has been suffering from declining advertising revenues and audience figures, which have had a negative effect on the share prices of its leading partners, Carlton and Granada.
In response to this decline, the two companies have agreed to work more closely to build the ITV brand.
ITV1 will sit alongside: cable and satellite channel ITV2; digital terrestrial service ONdigital, which is to be rebranded ITV Digital; TV internet service ONnet, which becomes ITV Active; a new premium pay-TV sports channel ITV Sport; and the main website ITV.com.
Carlton and Granada are currently at loggerheads with the government about separate issues at the network.
Granada chairman Charles Allen criticised Tony Blair for failing to scrap cross-media ownership legislation which prevents the companies from merging during this parliamentary term.
Carlton has called upon the government to provide more support to the companies' joint venture digital terrestrial broadcaster by lowering the extra licence fee charges they have to pay.
Carlton was referring to the charge for the Channel 3 broadcasting licence, which costs the ITV companies, including Carlton, Granada and SMG £1bn over five years.