Balding, who has been the BBC's main racing presenter since 1997, has signed a four-year deal with Channel 4 which will prevent her from presenting racing on any other channel - though she will still be allowed to take other presenting jobs at the BBC.
The 41-year-old, a former jockey whose father Ian was a racehorse trainer, was thrilled to have landed the job.
"I'm delighted that this agreement means I am able to broadcast racing for Channel 4 and combine it with expanded and varied programming at the BBC," she said. "I love my job and I can't believe how lucky I am. I'm incredibly excited at what the future holds."
Top jockey Frankie Dettori was also happy to hear the news.
"It's brilliant news for racing," he said. "I've been glued to the Olympics, where Clare's been doing a fantastic job across a range of sports. She's bound to bring new fans to Channel 4 racing, which has to be a big plus, and I tend to ride my biggest winners when she's around!"