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Previous agreements gave the US close oversight of Icann - drawing criticism from other countries.
Earlier this year, the EU called on the US to relinquish its control and Icann to become "universally accountable".
"The US government is the only body to have had formal oversight of Icann's policies and activities since its inception in 1998," it said.
"The Commission believes that Icann should become universally accountable, not just to one government but to the global internet community.
However, it is unlikely that the new agreement will sever the links between the US government and Icann entirely.
Rod Beckstrom, president and chief of the organisation, said in a letter to Congress last week that it would seek to maintain a "long term, formal relationship with the United States Government.
The body also has a separate agreement with the US - to run the Internet Assigned Numbers Authority (IANA) - that expires in 2011.