First approved in June, the new system was ratified at a meeting of the committee and a group of conference commissioners in Washington, Virginia Tech University President Charles Steger said.
"I'm delighted that additional details have been resolved and that everything is on track so fans can enjoy the post-season they've been asking for," he said. "College football, with its great regular season, is strong and popular -- it's about to get stronger and more popular."
School presidents this year gave the thumbs-up to a four-team playoff to determine a champion in the Football Bowl Subdivision, becoming effective in 2014 and running through 2026.
Steger, chairman of the oversight committee, said under the new system four teams will be chosen by a selection committee, with semifinals to be held at current bowl sites on a rotating basis.
A national championship game would then be played at the bowl with the highest bid.
The new setup would replace the current formula in which computerized rankings are used to determine the top two teams, who then play for the title.