Russia has been banned from competing at next year's Winter Olympics in Pyeongchang by the International Olympic Committee.
But Russian athletes who can prove they are clean would be allowed to compete in South Korea under a neutral flag.
It follows an investigation into allegations of state-sponsored doping at the 2014 Games hosted by Russia in Sochi.
"This should draw a line under this damaging episode," the IOC said.
The decision has been widely condemned in Russia, with some politicians urging a boycott of the Games, though other officials have welcomed the chance for 'clean' athletes to take part.
IOC president Thomas Bach and his board - who made the announcement in Lausanne on Tuesday - came to the decision after reading through the findings and recommendations of a 17-month investigation headed up by the former president of Switzerland, Samuel Schmid.
The Russian Olympic Committee (ROC) has been suspended but the IOC said it will invite Russian clean athletes to compete in February under the name 'Olympic Athlete from Russia' (OAR).
The Games in South Korea, which start on 9 February, will now be without one of the powerhouses of Olympic sport.
The World Anti Doping Agency (Wada) enlisted the services of Canadian law professor and sports lawyer Dr Richard McLaren to look into the allegations.
The McLaren report concluded 1,000 athletes across 30 sports benefitted from the doping programme between 2012 and 2015, reports BBC.