The 2012 Games site in east London will be named the Queen Elizabeth Olympic Park, London Mayor Boris Johnson said.
The site in Stratford, which includes the velodrome the wave-shaped aquatic centre and the stadium, is located in a 500-acre site next to the River Lee.
Mr Johnson said the name was a "fitting tribute" to the monarch and the park will be an "astounding" place to visit.
The new name for the park will come into effect in 2013 after the site reopens following the Games.
The name was decided upon after consultation with investors, developers, local boroughs, and businesses, and received permission from the Queen, the British Olympic Association (BOA) and the International Olympic Committee (IOC).
Ian Roberts, vice chairman of Royal Family supporters the British Monarchist League (BML), said: "The BML is delighted that Mayor Johnson has made this decision.
"This is a simple honour to a very hardworking monarch and public servant.
"Her Majesty has spent her entire reign seeking to represent all the peoples of the UK and fully supports the Olympic ethos."
But a spokesman for anti-monarchist group Republic said: "It says a lot about the paucity of imagination of the organisers.
'Ambitious and comprehensive'
"There are many accomplished British people, particularly athletes, who it could have been named after."
Unveiling its vision, the Olympic Park Legacy Company (OPLC) said the site would have five "family-focused neighbourhoods" with transport connections which will generate jobs, sport and leisure activities.
Mr Johnson said: "Not since Georgian England has London seen such an ambitious and comprehensive vision for a new district.
"Beautiful spaces, high quality family homes, spectacular facilities, excellent shopping, and unrivalled transport links in Europe's largest new urban park.
"I can not think of a better place for families to settle and children to grow up."
Baroness Ford, chair of the OPLC said: "The strength of the values, heritage and power of the Royal and Olympic associations fit with our ambition for the park.
"We are creating a new piece of London with family neighbourhoods, open space and events, inspired by the 2012 venues that surround them."
BOA chairman Lord Moynihan said the name was a "wonderful tribute to the people of Great Britain and the importance of sport in our country".
Culture Secretary Jeremy Hunt said the name was "fitting" as the Queen has been "supportive of London 2012 from the start" and said the event would be taking place in her Diamond Jubilee year.
The site will have a mixture of town houses, mews houses, affordable flats and riverside properties which will sit next to the various venues.
The OLPC plans to build up to 11,000 new homes over the next 25 years with work scheduled to begin in 2014, generating up to 10,000 jobs.
New schools, nurseries will be built for the families living in the park along with health centres, community and faith spaces.
The site will also include hanging gardens set 30ft above ground, meadows, lawns, shrubs and 4,000 trees.
Here is a selection of comments from BBC News website readers:
Brilliant name. Let's hope the park's inspiration lasts as long as the Queen's has. Lindsay, London
I think the choice of name for the park is very appropriate and will help all communities and cultures recognise the Olympics as an opportunity to bond together under the harmonious spirit of sporting achievement. Malcolm, London
Well done, only one mistake. It should be Queen Elizabeth II Olympic Park, the II is the important bit, after all we have had two Queen Elizabeths reign here. Thiepval Young, Carrickfergus, County Antrim
This is a fitting tribute to a great and respected world leader. Would that more nations had apolitical, unifying heads! Philip, Maryland, US
This park should be dedicated to thousands of unsung sporting heroes and the sport lovers. I would have called it People's Park. Pragya Tiwari, Delhi, India
I think that the name was rightly chosen, and the fact that they renamed it after Queen Elizabeth is really impressive and respectful. Maranatha Obasi