The Johannesburg-based Lions have been relegated from the Super Rugby competition to make way for new franchise the Southern Kings.
South African Rugby Union officials voted 26-3 to promote the Eastern Cape-based Kings and relegate the Lions, who finished last in this year's tournament.
The Sharks, who finished runners-up this season to the Chiefs of New Zealand, semi-finalists the Stormers, three-time champions the Bulls and the improving Cheetahs retain their status as South Africa's other franchises in the 15-team competition.
SARU's president Oregan Hoskins says all provinces have consistently supported the need for an Eastern Cape team in the competition, and there had been ongoing political pressure to promote the Kings.